LIBRARY 

OF  THE 


MASSACHUSETTS 

AGRICULTURAL 

COLLEGE 


SOURCE__iD^J_-^_]L 

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CARD 


IlITERITATIOKAL   IlISTITUTE  OF  AGHICULTUP.E 


•    •    • 


MISCELLiilTEOUS   PUBLICATIOITK 


Yoltime  1 

Mi 


TABLE  OF  COITTErTS 

1.  Statement  concerning  the  institute. 

2.  Letter  to  Mr.  Perkins  relative  to  the  institute.  190^. 
5.  The  Institute  and  cooperative  banliing.   1909. 

4.  Resolution  passed  by  the  national  grange.  1910.   £  coDies 

5.  Price  Fluctuations  in  the  staples:  their  ini"luence  on 

the  v/elfare  of  the  state.   1910.   £  copies. 

6.  Its  Labors  in  behaLf  of  economic  betterment.   1910. 

7.  General  introduction  to  the  bulletins  of  the  bureau  of 

agricultural  intelligence  and  of  diseases  of  plants. 
1910. 

8.  Report  of  the  delegation  of  the  U.S.  to  the  general 

assembly  of  the  institute.   1911. 

9.  Message  from  the  president  of  the  U.S.   concerning 

creation  of  institute.  1906. 

10. Its  influence  on  economic  welfare.   1911. 

ll.Raiffeisen  System  of  rural  cooperative  credit,  its 
adaptation  and  adoption  in  the  U.£.   191E. 

lE.L'Activite  de  I'Institut.   1912. 

15. Le  Present  et  I'Avenir  de  l»Institut.   1912. 

14. Su  Importancia  para  la  America  Latina,  en  especial 
para  Chile.   191i5. 

If. Message  from  the  president  of  the  U.S.  concerning 
the  general  assembly  of  the  institute.   1913. 

16. Board  of  Agriculture  and  fisheries.  The  Institute- 
Its  objects  and  its  publications.    1913. 

17. The  Landschaft.   Co-operative  rural  credit.   1912. 

16. Pamphlet  concerning  the  institute.   1913. 

19. The  Way  out  of  the  rut.   191.^.  2  copies. 


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TABLE  OF  COIITEITTS  (cont.) 

20.  Concerning  the  international  year  booli  of 

agricultural  statistics.   191.3,  1^14. 

21.  Steadying  the  world's  prices  of  the  staples.  1914. 

22.  Proposal  for  an  international  conference  on  the 

regulation  and  control  of  ocean  carriage  by  means 
of  an  international  commerce  commission. ...... 

2?.  Concerning  the  fourth  volume  of  the  International 
year-book  of  agricultural  legislation.   ISlf.. 

24.  Letter  to  Senator  Hiram  W.  Johnson  on  the  work  of 

the  institute.   1918. 

25.  Our  foreign  trade  after  the  war.   1918. 
26. 


% 


63d  Congress) 
1st  Session     J 


SENATE 


f  Document 
\   No.  196 


INTERNATIONAL 

INSTITUTE  OF  AGRICULTURE 

AT  ROME 


MESSAGE  FROM  THE 
PRESIDENT  OF  THE  UNITED  STATES 

TRANSMITTING 

THE  REPORT  OF  THE  DELEGATES  OF 
THE  UNITED  STATES  APPOINTED  TO 
ATTEND  THE  GENERAL  ASSEMBLY  OF 
THE  INTERNATIONAL  INSTITUTE  OF 
AGRICULTURE  AT  ROME 
IN  MAY,  1913 


^f^i 


v^, 


|!f 


Septkmbbr  29,  1913. — Read,  referred  to  the  Committee  on  Agriculture 
and  Forestry,  and  ordered  to  be  printed 


WASHINGTON: 
1913 


LETTER  OF  TRANSMITTAL. 


To  the  Senate  and  tlie  House  of  Representatives: 

I  transmit  herewith  for  the  information  of  Congress  the  report  of 
the  delegates  of  the  United  States,  who  were  appointed  under  the 
authority  of  Congress  to  attend  the  general  assembly  of  the  Inter- 
national Institute  of  Agriculture  at  Rome,  in  May  1913. 

WooDRow  Wilson. 
The  White  House,  September  29,  1913. 


LETTER  OF  SUBMITTAL. 


Department  of  State, 

Washington,  Septeinber  27,  1913. 
The  President: 

The  undersigned  Secretary  of  State  has  the  honor  to  lay  before  the 
President  with  a  view  to  its  transmission  to  Congress  for  the  informa- 
tion of  that  body  a  report  of  the  delegates  of  the  United  States  to  the 
general  assembly  of  the  International  Institute  of  Agriculture  at 
Rome,  appointed  by  virtue  of  the  provision  of  the  diplomatic  and 
consular  appropriation  act,  approved  April  30,  1912,  for  the  attend- 
ance of  delegates  at  the  assembly. 
Respectfully  submitted. 

W.  J.  Bryan. 
The  President, 

The  White  Rouse, 


REPORT  OF  UNITED  STATES  DELEGATION  TO  GENERAL  ASSEM- 
BLY OF  INTERNATIONAL  INSTITUTE  OF  AGRICULTURE,  1913. 


Washington,  D.  C,  Septemher  22,  1913. 
The  Secretary  of  State. 

Sir  :  The  delegates  on  the  part  of  the  United  States  to  the  general 
assembly  of  the  International  Institute  of  Agriculture,  which  held  its 
fourth  session  at  Rome,  Italy,  May  6-12,  1913,  have  the  honor  to 
submit  the  following  report: 

The  general  assembly  is  the  legislative  body  of  the  International 
Institute  of  Agriculture.  It  consists  of  delegates  from  each  of  the 
countries  which  are  parties  to  the  treaty,  dated  June  7,  1905,  by 
which  the  institute  was  created,  and  wmch  number  at  present  53. 
The  general  assembly  meets  at  intervals  of  two  year^  to  receive  the 
reports  of  the  president  of  the  institute  on  its  work  since  its  previous 
session  and  the  reports  and  resolutions  submitted  on  behau  of  the 
permanent  committee  and  on  the  basis  of  these  reports  to  determine 
the  policies  and  fix  the  budget  of  the  institute.  The  permanent  com- 
mittee consists  of  one  delegate  from  each  adhering  country.  A  con- 
siderable number  of  its  members  spend  substantially  all  their  time 
at  the  seat  of  the  institute.  This  committee  is  not  only  the  principal 
executive  authority  of  the  institute,  but  also  initiates  most  of  the 
measures  which  come  before  the  general  assembly.  In  accordance 
with  the  terms  of  the  treaty  creating  the  institute,  the  permanent 
committee  submitted  to  the  various  governments  some  weeks  in 
advance  of  the  present  meeting  of  the  general  assembly  a  program  of 
subjects  to  be  considered.  Its  reports  and  resolutions  on  each  of 
these  subjects  were  laid  before  the  assembly  at  its  opening  meeting 
in  the  form  of  printed  papers  carefully  prepared  by  members  desig- 
nated for  this  purpose. 

Each  paper,  together  with  various  proposed  amendments,  resolu- 
tions, and  articles  submitted  by  members  of  the  assembly,  was 
referred  according  to  its  subject  to  one  of  the  four  commissions  or 
committees  into  which  the  assembly  was  divided,  and  in  this  way 
received  careful  discussion.  The  conclusions  of  the  commissions  were 
then  embodied  in  a  formal  report  to  the  general  assembly,  which,  in 
most  instances,  approved  the  recommendations  of  the  commissions 
without  change. 

At  the  meeting  of  the  general  assembly  in  1913,  50  of  the  countries 
adhering  to  the  institute  were  represented  by  from  1  to  8  delegates, 
the  total  number  present  being  114.  The  absentees  were  Egypt, 
Mexico,  and  the  Dutch  East  Indies. 

Only  brief  summary  statements  wiU  be  made  in  this  report  but  the 
papers  presented  at  the  meeting  wiU  be  published  by  the  institute  and 
can  be  obtained  by  those  interested. 

5 


k 


6  INTERNATIONAL  INSTITUTE   OF   AGRICULTURE   AT   ROME. 

The  general  officers  of  the  institute  are  the  president,  who  is  also 
chairman  of  the  permanent  committee,  the  vice  president,  and  the 
secretary  general.  The  work  of  the  institute  is  divided  among  four 
bureaus:  (1)  The  bureau  of  the  secretary  general,  (2)  the  bureau  of 
general  statistics,  (3)  the  bureau  of  agricultural  intelligence  and 
plant  diseases,  and  (4)  the  bureau  of  economic  and  social  institutions. 
The  bureau  of  the  secretary  general  has  charge  of  the  personnel, 
financial  and  other  routine  business,  the  building  and  its  equipment, 
the  printing  and  distribution  of  publications,  the  library  and  general 
bibhogi'aphical  work,  and,  as  a  more  recent  service,  the  preparation 
and  publication  of  an  annual  compilation  of  agricultural  legislation  in 
the  different  countries  of  the  world. 

The  bureau  of  general  statistics  collects,  collates,  and  pubHshes 
statistics  of  production  and  commerce  in  agricultural  products,  both 
animal  and  vegetable,  throughout  the  world. 

The  bureau  of  agricultural  intelligence  and  plant  diseases  collects 
and  publishes  information  regarding  the  progress  of  scientific  and 
experimental  investigations  and  practical  experience  in  agriculture 
throughout  the  world,  and,  as  a  branch  of  this  work,  gives  special 
attention  to  the  diseases  of  plants  and  to  entomology. 

The  bureau  of  economic  and  social  institutions  collects  and  pub- 
Hshes statistics  and  general  information  regarding  agricultural  co- 
operation, insurance,  and  credit,  together  with  other  matters  relating 
to  the  economic  and  social  organization  of  rural  communities. 

Those  publications  of  the  institute  which  have  a  bearing  on  the 
formation  of  the  price  of  the  staples  (such  as  crop  reports,  and  data 
on  exports,  imports,  and  stocks)  are  based  exclusively  on  official 
information,  suppfied  direct  to  the  institute  by  the  adhering  Gov- 
ernments. 

The  other  publications  are  produced  from  the  following  sources: 

(a)  Information  ofiicially  communicated  by  the  Governments. 

(6)  Original  articles  contributed  by  eminent  authorities  designated 
by  the  adhering  Governments. 

(c)  Excerpts  and  abstracts  of  articles  translated  from  the  2,225 
official  and  unofiicial  periodical  publications  of  the  world  received 
by  the  institute. 

The  institute  prints  and  publishes  two  annuals,  and  three  monthly 
and  one  weekly  bulletins,  together  with  a  considerable  number  of 
monographs  on  special  subjects.  The  annuals  are  on  agricultural 
statistics  and  legislation,  respectively;  the  monthly  bulletins  are  on 
(1)  agricultural  statistics;  (2)  agricultural  intelfigence  and  diseases 
of  plants,  and  (3)  economic  and  social  institutions;  and  the  weekly 
bulletin  is  bibliographical.  The  monthly  bulletins  are  published  in 
the  French,  German,  Enghsh,  Spanish,  Italian,  and  Hungarian 
languages.  French  being  the  official  language  of  the  institute,  the 
editions  in  that  language  are  paid  for  from  the  funds  of  the  institute. 
Provision  for  the  edition  in  the  other  languages  is  made  by  the 
countries  interested.  The  Congress  of  the  United  States  has  made 
an  annual  appropriation  of  $5,000  for  translating  and  printing  the 
English  edition,  the  rest  of  the  expense  being  borne  by  Great 
Britain  and  her  colonies.  This  is  considered  a  fair  arrangement  by 
the  delegates  from  the  United  States,  and  they  recommend  that 
Congress  should  be  asked  to  continue  this  appropriation. 


INTERNATIONAL  INSTITUTE   OF  AGRICULTUEE  AT   ROME.  7 

Within  the  past  two  years  the  institute  has  brought  forth  annual 
pubUcations  covering  the  world's  activities  in  two  important  lines. 
The  first  is  the  Yearbook  of  Agricultural  Legislation,  which  records 
the  progress  in  the  domain  of  law  of  the  world-wide  movement  for 
the  improvement  of  the  economic  and  legal  conditions  of  agriculture 
and  rural  communities.  As  a  book  of  reference  for  legislators,  ex- 
ecutives, and  all  others  who  are  interested  in  the  framing  and  execu- 
tion of  laws  on  the  multitudinous  subjects  relating  to  agriculture  and 
country  life,  this  yearbook  promises  to  be  of  very  great  value.  The 
second  is  the  International  Yearbook  of  Agricultural  Statistics,  which 
contains,  in  a  series  of  comparable  tables,  a  record  of  the  world's  area 
under  the  several  crops  and  of  their  production,  with  comparable 
data  for  the  trade  in  the  same  and  data  on  the  hve  stock  in  the 
several  countries.  It  thus  constitutes  an  inventory  of  the  world's 
agricultural  resources. 

In  the  report  to  the  general  assembly  the  delegate  of  Germany 
quoted  the  following  opinion  given  by  the  president  of  the  German 
Landwirtschaftsrat,  Dr.  Dade,  in  the  ''Zeitschrift  ftir  Agrarpolitik," 
on  this  publication: 

This  manual  is  indispensable  for  all  bodies  representing  agriciiltural  interests,  for 
Government  functionaries,  members  of  Parliament,  and  economists.  This  one  publi- 
cation is  in  itself  sufficient  to  convince  the  world  of  the  economic  utility  of  the  insti- 
tute. 

Such  a  publication  will  be  of  special  usefulness  in  educational 
institutions  where  increasing  attention  is  being  given  to  the  economic 
problems  of  agriculture  and  where  the  lack  of  reliable  and  up-to-date 
manuals  on  the  subjects  covered  by  the  yearbook  has  been  keenly 
felt. 

The  addition  of  commercial  statistics  to  those  on  agricultural 
production  in  the  monthly  Bulletin  of  Agricultural  Statistics  is  also 
an  important  and  valuable  step  of  progress  in  the  work  of  the  institute. 
At  present  the  commercial  information  thus  pubUshed  relates  to 
exports  and  imports,  visible  stocks,  and  the  prices  of  the  five  cereal 
crops  and  cotton  on  the  principal  markets  of  the  world.  Valuable 
as  this  information  is,  it  can  and  doubtless  will  be  supplemented  by  a 
broad  range  of  inquiries  by  the  institute  in  the  days  to  come.  As  was 
pointed  out  by  Mr.  Lubin  in  an  interesting  paper  presented  to  the 
assembly  at  its  recent  meeting,  it  is  very  desirable  that  the  institute 
should  collect  and  disseminate  information  which  will  show  the 
factors  determining  the  formation  of  the  prices  of  agricultural 
products  in  the  world's  market  centers. 

The  relative  place  which  the  collection  and  dissemination  of  sta- 
tistics should  hold  in  the  work  of  the  institute  was  earnestly  and 
thoroughly  discussed  in  the  assembly. 

As  the  institute  becomes  more  firmly  established  and  its  value  as 
an  international  clearing  house  on  economic  information  is  more 
generally  recognized  it  is  met  with  a  constantly  increasing  demand 
for  the  extension  of  its  service  along  the  many  lines  included  in  the 
broad  movement  of  our  day  for  agricultural  advancement.  Natu- 
rally the  members  of  the  assembly  were  individually  interested  in 
many  different  phases  of  this  movement,  and  thus  were  inclined  to 
look  forward  to  a  day  when  the  work  of  the  institute  would  be 
measurably  expanded.  As  a  rule,  however,  they  realized  that  the 
institute  would  grow  strong  only  as   it  did  well  whatever  tasks  it 


8  INTEKNATIONAL  INSTITUTE   OF   AGKICULTURE  AT  HOME. 

undertook,  and  therefore  were  ready  to  indorse  cordially  the  propo- 
sition that  the  institute  should  exercise  strict  seK-restraint  as  regards 
the  multiplication  of  lines  of  work;  inasmuch  as  the  initial  work  of 
the  institute  had  been  in  the  field  of  elaborating,  summarizing,  and 
giving  widespread  publicity  to  the  current  factors  which  influence 
the  price  formation  of  the  staples  of  agriculture  (crop  reporting  and 
agricultural  commercial  statistics),  it  was  agreed  that  nothing 
should  be  allowed  to  interfere  with  the  progressive  development  of 
its  function  in  this  direction.  This  was  defined  by  the  assembly 
to  be — 

the  or2;aniziiig  of  a  regular  international  service  of  prompt,  reliable,  and  complete 
information  on  plant  and  animal  production  and  on  the  consumption  and  trade  in 
agricultural  staples  and  their  prices. 

To  this  end,  the  Governments  of  the  adhering  countries  were 
urged  to  make  all  possible  efforts  to  facilitate  the  accomplishment  of 
this  task  by  the  mstitute,  and  the  permanent  committee  was  in- 
structed to  arrange  its  budget  so  as  to  msure  as  thoroughly  as  possible 
the  right  development  of  this  service. 

The  assembly  was  also  much  interested  in  the  continuance  of 
^efforts  by  the  institute  to  secure  the  improvement  of  the  crop- 
reporting  service  of  the  different  countries,  and  in  particular  the  uni- 
fication of  the  methods  of  reporting  crop  conditions  and  other  agri- 
cultural data.  It  is  clear  that  any  measures  which  are  taken  by 
the  adhering  Governments  to  bring  their  agricultural  statistics  into 
such  form  that  they  will  be  easily  comparable  and  can  thus  without 
difficulty  be  summarized  in  the  general  publications  of  the  institute 
will  be  very  beneficial  and  do  much  to  promote  the  ends  for  which 
the  institute  was  established.  The  clelegates  from  the  United 
States  therefore  joined  heartily  in  commending  the  efforts  of  the 
institute  in  this  direction  and  thoroughly  believe  that  whatever  our 
Government  may  do  to  assist  the  institute  in  this  respect  will  have 
good  results  for  both  our  own  people  and  the  rest  of  the  world. 

Much  attention  was  given  by  the  assembly  to  the  problems  involved 
in  the  establishment  of  governmental  agencies  for  the  control  of 
plant  diseases,  and  especially  to  questions  regarding  the  interna- 
tional relations  of  the  control  services.  It  had  been  expected  that 
the  assembly  would  have  for  its  guidance  in  these  matters  the  pro- 
ceedings and  conclusions  of  an  international  meeting  of  experts  in 
plant  pathology  which  was  to  have  been  held  under  the  auspices 
of  the  French  Government  early  in  1913.  Unforeseen  circumstances 
had,  however,  prevented  such  a  meeting,  but  the  French  Govern- 
ment had  announced  its  intention  to  pursue  the  matter  further, 
and  if  possible  to  arrange  for  this  meeting  in  the  spring  of  1914. 
Discussion  brought  out  very  clearly  that  a  greater  degree  of  agree- 
ment among  the  experts  as  to  the  requirements  for  a  satisfactory 
control  of  plant  diseases  must  precede  governmental  action  lookmg 
toward  international  agreements  on  this  subject.  The  assembly, 
therefore,  wisely  confined  its  action  chiefly  to  indorsing  the  propo- 
sition to  hold  an  international  meeting  of  plant  pathologists  and  to 
urging  the  adhering  Governments  to  create  services  for  the  control 
of  plant  diseases  within  their  own  borders.  It  also  recognized  the 
necessity  of  long-continued  study  of  the  problems  involved  in  such 
control  by  providing  that  hereafter  at  each  session  of  the  assembly 
a  committee  of  specialists  in  plant  pathology  from  the  different 


INTEENATIONAL  INSTITUTE   OF  AGRICULTUEE  AT  EOME.  9 

countries  should  be  brought  together  for  the  further  consideration  of 
these  matters. 

One  of  the  most  important,  and  at  the  same  time  the  most  diffi- 
cult, tasks  which  the  institute  has  undertaken  is  the  selection  and 
summarizing  of  important  articles  appearing  in  current  scientific 
and  practical  journals  and  the  publication  of  these  summaries  in 
the  monthly  Bulletin  of  Agricultural  Intelligence.  Such  work 
can  only  be  done  most  effectively  by  persons  thoroughly  trained 
in  the  different  lines  of  agricultural  science  and  practice  and  who 
have  at  the  same  time  a  high  degree  of  editorial  insight  and  the 
capacity  of  succinct,  accurate,  and  interesting  expression.  The 
services  of  such  persons  can  not  be  secured  and  retained  in  sufficient 
number  to  cover  the  broad  field  of  agriculture  except  by  the  expend- 
iture of  considerable  money.  The  institute  has  keenly  felt  its 
limitations  in.  thi*  regard  and  fully  realizes  that  it  has  only  made 
a  begmning  of  an  important  service  in  this  direction.  The  useful- 
ness of  what  it  has  done  is,  however,  generally  recognized  and  it  is 
hoped  that  in  the  near  future  the  means  will  be  provided  for  the 
further  strengthening  of  this  work.  Efforts  are  now  being  made 
to  secure  a  wider  collaboration  of  experts  in  the  different  countries, 
and  thus  to  bring  the  institute  into  closer  touch  with  those  who  are 
most  intimately  acquainted  with  the  progress  of  agricultural  science 
and  practice  throughout  the  world.  Closely  connected  with  this 
service  is  the  important  function  of  answering  inquiries  on  scientific 
and  practical  questions  addressed  to  the  institute  through  the  Gov- 
ernments of  the  adhering  countries.  With  the  more  complete 
organization  of  the  bureau  of  agricultural  intelligence  the  importance 
of  the  institute  as  an  international  clearing  house  for  agricultural 
information  will  doubtless  be  greatly  increased. 

As  the  institute  accumulates  knowledge  and  experience  regarding 
agricultural  problems,  and  has  a  more  complete  equipment  for  its 
work,  it  will  be  able  not  only  to  disseminate  useful  Imowledge  but 
also  to  make  many  wise  and  practical  suggestions  for  enterprises 
which  may  profitably  be  set  on  foot  either  internationally  or  in  one 
or  more  countries.  The  institute  is  empowered  to  do  this  by  article 
9,  letter  F,  of  the  treaty  (lines  20  to  22  of  p.  4),  which  reads: 

Submit  to  the  approval  of  the  Governments,  if  there  is  occasion  for  it,  measures 
for  the  protection  of  the  common  interests  of  farmers  and  for  the  improvement  of 
their  conditions. 

Examples  of  this  kind  of  service  which  the  institute  is  now  under- 
taking may  be  seen  in  its  efforts  to  promote  the  organization  of  an 
international  meteorological  service,  to  extend  the  movement  for 
the  protection  of  useful  birds,  and  to  encourage  a  broader  study  of 
the  problems  of  dry  farming. 

The  institute  has  recognized  the  rapidly  growing  sentiment  through- 
out the  world  that  both  governments  and  people  should  give  more 
thorough  and  serious  attention  to  the  economic  and  social  problems 
of  rural  communities.  Therefore,  as  a  branch  of  its  labors,  it  has 
organized  the  bureau  of  economic  and  social  institutions.  This 
bureau  is  giving  immediate  attention  to  a  study  of  the  present  status 
of  agricultural  cooperation  and  presently  will  supplement  its  work  by 
the  publication  of  the  statistics  of  cooperation  m  the  different  coun- 
tries. It  now  publishes  its  monthly  Bulletin  of  Economic  and 
Social  Intelligence  dealing  with  the  European  systems  of  cooperative 


10  INTERNATIOKAL  INSTITUTE   OF   AGEICULTUEE  AT   EOME. 

credit.  In  this  and  other  ways  the  institute  has  materially  aided  the 
movement  in  the  United  States  along  this  line. 

Especial  acknowledgment  is  due  the  institute  for  the  assistance 
which  it  rendered  to  the  United  States  and  American  Commissions 
on  Rural  Credit,  in  connection  with  their  recent  investigation  of  this 
subject  in  Europe.  By  arranging  for  a  meeting  of  these  commissions 
in  Rome  at  the  time  of  the  meeting  of  its  assembly  the  institute 
brought  them  into  touch  not  only  with  the  King  and  Government  of 
Italy,  but  also  with  the  delegates  of  the  assembly,  among  whom 
there  were  many  of  the  eminent  authorities  on  rural  credit  systems. 

In  this  way  the  commissions  were  enabled  at  the  outset  of  their 
European  journey  to  get  a  general  survey  of  the  subject  they  were  to 
study  and  to  learn  much  which  would  enable  them  to  make  their 
studies  in  the  different  countries  under  the  most  favorable  condi- 
tions. 

The  assembly  examined  and  approved  the  account  of  receipts  and 
expenditures  of  the  institute  for  1911  and  1912,  as  submitted  by  the 
permanent  committee,  and  fixed  the  budget  for  1913  at  898,452  lire, 
and  that  for  1914  at  1,106,485  Ure.  This  increase  in  the  budget  is 
necessitated  not  so  much  by  the  expansion  in  the  lines  of  work  of 
the  institute  as  fr>  m  the  fact  that  as  the  present  lines  of  work  become 
established  and  their  usefulness  is  more  apparent,  there  is  a  natural 
demand  that  the  service  rendered  by  the  institute  shall  be  more  fully 
elaborated  and  extended.  To  meet  these  requirements  the  assembly 
voted  to  ask  the  adhering  Governments  to  raise  the  unit  of  their 
contributions  from  1,500  francs  to  2,500  francs,  as  provided  for  in 
the  treaty  of  1905.  Since  the  contribution  of  the  United  States  is 
on  the  basis  of  16  units,  the  amount  which  Congress  should  be  asked 
to  appropriate  toward  the  current  expenses  of  the  institute  should  be 
increased  from  24,000  francs  ($4,800)  to  40,000  francs  ($8,000). 
The  desirability  of  this  provision  for  the  growing  needs  of  the  institute 
was  so  apparent  that  the  delegates  of  all  the  adhering  countries  voted 
for  the  increase  in  the  budget  and  undertook  to  recommend  their 
Governments  to  enlarge  their  contributions. 

This  was  one  of  the  many  evidences  that  the  countries  which  are 
supporting  the  institute  are  now  firmly  convinced  that  the  work 
which  it  is  doing  is  important  and  valuable.  There  being  no  longer 
any  question  on  these  fundamental  points,  the  Governments  are 
more  and  more  interesting  themselves  m  plans  for  strengthening  the 
institute  and  developing  its  activities  along  the  must  useful  lines. 
T^ey  are  also  making  arrangements  on  a  more  permanent  basis  for 
al-mg  their  part  in  the  management  and  support  of  the  institute,  and 
for  securing  from  it  the  greatest  advantages  which  it  offers.  The 
delegates  from  the  United  States  are  unanimous  in  the  opinion  that 
the  affairs  of  the  institute  deserve  most  careful  consideration  by  our 
Government,  and  that  every  reasonable  effort  should  be  made  to  so 
organize  and  develop  our  relations  with  the  institute  that  we  may 
contribute  in  the  most  effective  way  to  its  proper  maintenance  and 
that  our  people  may  benefit  in  the  highest  degree  from  its  activities. 

The  King  and  Government  of  Italy  continue  to  show  their  vital 
interest  in  the  institute  by  generous  contributions  to  its  support  and 
by  aiding  it  in  many  other  ways.  The  delegates  from  the  United 
States  received  from  the  King  and  Queen,  the  minister  of  foreign 
affairs,  the  minister  of  agriculture,  and  other  officials  of  the  Italian 


INTERNATIONAL   INSTITUTE    OF   AGRICULTURE   AT    ROME.  11 

Government,  and  from  the  mayor  and  other  officials  of  the  city  of 
Rome  many  courtesies,  for  which  they  desire  to  make  due  acknowl- 
edgements. 

Appended  to  this  report  are  (1)  a  list  of  the  delegates  to  the  general 
assembly  from  all  nations;  (2)  a  recapitulation  of  the  reports,  debates, 
and  resolutions  of  the  general  assembly;  and  (3)  the  following  papers 
submitted  by  the  permanent  delegate  of  the  United  States:  (a)  His 
annual  report  for  1912-13  to  the  Secretary  of  State  of  the  United 
States,  with  accompanying  papers;  (b)  his  letter  to  the  chairman  of 
the  American  Commission  on  Agricultural  Cooperation  and  Rural 
Credits  regarding  the  Landschaften  system  of  rural  credits;  (c)  cor- 
respondence with  the  minister  of  finance  of  Russia  on  the  form  of 
crop  reports ;  and  (d)  a  paper  read  before  the  general  assembly  on  the 
Commercial  Bulletin  and  the  factors  in  price  formation. 

Alfred  C.  True. 

David  Lubin. 

Chas.  W.  Pugsley. 

Spencer  Ewing. 

Thos.  J.  Brooks. 


INTEENATIONAI  INSTITUTE   OF  AGRICTJLTIJIIE. 

Fourth  Session,  May,  1913. 

names  and  positions  of  delegates  of  the  adheking  countries 
to  the  general  assembly. 

Germany.- — Dr.  T.  Miiller,  privy  councilor,  delegate  to  the  perma- 
ment  committee  of  the  International  Institute  of  Agriculture;  M. 
Delbriick,  chief  of  the  imperial  bureau  of  statistics;  Dr.  Boenisch, 
privy  councilor,  imperial  ministry  of  the  iaterior;  Baron  von  Falken- 
nausen,  privy  councilor,  Prussian  ministry  of  agriculture;  Dr. 
Behrens,  director  of  the  Imperial  Biological  Institute  at  Dahlem; 
Baron  von  Cetto-Reichertshausen,  president  of  the  agricultural 
council  of  Bavaria,  representative,  German  agricultural  council  and 
German  Agricultural  Society;  Dr.  Roesicke,  president  of  the  Feder- 
ation of  German  Agriculturists;  M.  Johannsen,  vice  president  of  the 
Agricultural  Cooperative  Associations  of  the  German  Empire. 

Argentina. — His  Excellency  M.  E.  Portela,  envoy  extraordinary  and 
minister  plenipotentiary  of  Argentina  to  His  Majesty  the  King  of 
Italy, 

Austria. — Baron  Bernhard  von  Ehrenfels,  president  of  the  Imperial 
Roya]  Agricultural  Society  of  Vienna,  member  of  the  Austrian 
Reichsrat;  Prof.  Karl  Portele,  councilor  of  the  imperial  royal  ministry 
of  agriculture;  Baron  Hans  de  Cnobloch,  ministerial  councilor  of  the 
imperial  royal  ministry  of  agriculture;  Chevalier  Victor  de  Pozzi, 
government  councilor  of  the  imperial  royal  ministry  of  agriculture, 
delegate  to  the  permanent  committee  of  the  International  Institute 
of  Agriculture;  Chevalier  Felix  de  Weil,  chief  of  the  bureau  of  statis- 
tics in  the  imperial  royal  ministry  of  agriculture. 

Hungary. —  M.  Edmond  de  Miklos  de  Miklosvar,  secretary  of  state, 
member  of  the  Hungarian  Chamber  of  Magnates,  delegate  to  the  per- 
manent committee  of  the  International  Institute  of  Agriculture;  M. 
Robert  de  Dubravszky  de  Stosz,  ministerial  councilor  in  the  Hunga- 
rian ministry  of  agriculture;  M.  Etienne  de  Berndt  de  Korlat,  director 
of  the  Hungarian  Federation  of  Agriculturists;  M.  Jules  de  Rubinek 
de  Zsitvabessenyo,  director  of  the  National  Society  of  Hungarian 
Agriculturists;  M.  Zvonimir  Zepic,  township  councilor;  M.  Tibor  de 
Pechy  de  Pechiyfalu,  secretary  of  the  ministry  of  agriculture. 

Belgium. — M.  de  Vuyst,  director  general  of  the  rural  office  of  the 
ministry  of  agriculture  and  public  works;  M.  O.  Bolle,  delegate  to  the 
permanent  committee  of  the  International  Institute  of  Agriculture; 
M.  E.  Marchal,  director  of  the  State  phytopathological  station;  M.  D. 
Van  Hove,  inspector  in  the  phytopathological  service. 

Brazil. —  M.  Antonino  Fialho,  formerly  deputy  and  formerly  presi- 
dent of  the  National  Society  of  Agriculture,  delegate  to  the  perma- 
nent committee  of  the  International  Institute  of  Agriculture. 

12 


INTERNATIONAL  INSTITUTE   OP  AGEICULTTJEE  AT   EOME.  13 

Bulgaria. — M,  D.  Rizoff,  minister  plenipotentiary  of  Bulgaria  to 
His  Majesty  the  King  of  Italy,  delegate  to  the  permanent  committee 
of  the  International  Institute  of  Agriculture. 

Chile.- — M.  S.  Aldunate  Bascunan,  minister  plenipotentiary  of  Chile 
to  His  Majesty  the  King  of  Italy,  delegate  to  the  permanent  commit- 
tee of  the  International  Institute  of  Agriculture;  M.  Enrique  Paut 
Vergara,  consul  general  of  Chile  at  Rome. 

Gliina. — M.  Shu-Tongchi,  attache  of  the  legation  of  the  Republic  of 
China  to  His  Majesty  the  King  of  Italy,  delegate  to  the  permanent 
committee  of  the  International  Institute  of  Agriculture. 

Costa  Rica. — R.  M.  Montealegre,  minister  plenipotentiary  of  Costa 
Rica  to  His  Majesty  the  King  of  Italy,  delegate  to  the  permanent 
committee  of  the  International  Institute  of  Agriculture. 

Cuba. — Dr.  C.  M.  de  Cespedes  y  Quesada,  minister  plenipotentiary 
of  Cuba  to  His  Majesty  the  King  of  Italy,  delegate  to  the  permanent 
committee  of  the  International  Institute  of  Agriculture. 

Denmarlc. — Baron  H.  Rosenkrantz,  grand  huntsman  of  the  court; 
M.  A.  Oldenburg,  secretary  of  the  legation  of  Denmark  to  the  Govern- 
ment of  Italy,  delegate  to  the  permanent  committee  of  the  Inter- 
national Institute  of  Agriculture. 

Ottoman  Empire. — Dr.  Mehmed  Djemil  Bey,  delegate  to  the  per- 
manent committee  of  the  International  Institute  of  Agriculture. 

Egypt- 
Ecuador. — M.  S.  Aldunate  Bascunan, 

Spain. — M.  Enrique  Trenor  y  Montesinos,  Count  of  Montornes, 
chief  of  the  agricultural  service  of  the  Province  of  Valencia;  M. 
Ignacio  Girona  y  Vilanova,  senator,  agricultural  engineer;  M.  Jos6 
Cascon,  agricultural  engineer,  director  of  the  Practical  School  of 
Agriculture  of  Palencia;  M.  Enrique  R.  de  Cells,  agricultural  engineer, 
delegate  to  the  permanent  committee  of  the  International  Institute 
of  Agriculture. 

United  States  of  America. — Dr.  AKred  C.  True,  director  of  the  Office 
of  Experiment  Stations  of  the  Department  of  Agriculture;  Mr.  David 
Lubin,  delegate  to  the  permanent  committee  of  the  International 
Institute  of  Agriculture;  Prof.  C.  W.  Pugsley,  University  of  Nebraska; 
Mr.  Spencer  Ewing,  Bloomington,  lU. ;  Prof.  T.  J.  Brooks,  Mississippi 
Agricultural  and  Mechanical  College. 

EtMopia. — Prof.  G.  Cuboni,  director  of  the  Station  of  Vegetable 
Pathology  at  Rome,  delegate  to  the  permanent  committee  of  the 
International  Institute  of  Agriculture. 

France. — M.  Dabat,  councilor  of  state,  director  general  of  streams 
and  forests  of  the  ministry  of  agriculture;  M.  Berthault,  director  of 
agricultural  instruction  and  services  of  the  ministry  of  agriculture; 
M.  Decharme,  chief  of  the  service  of  cooperative  and  mutual  agri- 
culture of  the  ministry  of  agriculture;  M.  Lesage,  inspector  of  agri- 
culture, chief  of  the  office  of  agricultural  information  of  the  ministry 
of  agriculture;  M.  Dop,  vice  president  of  the  International  Institute 
of  Agriculture;  M.  Foex,  assistant  director  of  the  station  of  vegetable 
pathology  at  Paris. 

Algeria. — M.  Lesage,  inspector  of  agriculture,  chief  of  the  office  of 
agricultural  information  of  the  ministry;  of  agriculture  of  France. 

Regency  of  Tunis. — M.  Louis-Dop,  vice  president  of  the  Interna- 
tional Institute  of  Agriculture. 


14         INTERNATIOISrAL  IN'STITUTE   OF   AGEICULTUEE   AT  EOME. 

Great  Britain  and  Ireland. — Sir  S]^dney  Olivier,  K.  C.  M.  G.,  per- 
manent secretary  of  the  board  of  agriculture  and  fisheries;  Sir  Robert 
P.  Wright,  president  of  the  department  of  agriculture  of  Scotland; 
Mr.  T.  P.  Gill,  secretary  of  the  department  of  agriculture  and  technical 
instruction  for  Ireland;  Mr.  H.  G.  Dering,  M.  V.  O.,  counselor  of  the 
embassy  of  Great  Britain  to  the  Government  of  Italy,  delegate  to  the 
permanent  committee  of  the  International  Institute  of  Agriculture. 

Australia. — Mr.  H.  G.  Dering,  M.  V.  O.,  counselor  of  the  embassy 
of  Great  Britain  to  the  Government  of  Italy,  delegate  to  the  perma- 
nent committee  of  the  International  Institute  of  Agriculture. 

Canada.^Mi.  R.  F.  Stupart,  F.  R.  S.  C,  F.  R.  A.  S.  C,  director 
of  the  meteorological  service  of  Canada;  Hon.  Philemon  Cousineau, 
K.  C;  Mr.  T.  K.  Doherty,  commissioner  of  the  International  Institute 
of  Agriculture;  Mr.  H.  G.  Dering,  M.  V.  O.,  counselor  of  the  embassy 
of  Great  Britain  to  the  Government  of  Italy,  delegate  to  the  perma- 
nent committee  of  the  International  Institute  of  Agriculture. 

British  India. — Sir  Edward  Buck,  K.  C.  S.  I.,  delegate  to  the  per- 
manent committee  of  the  International  Institute  of  Agriculture. 

New  Zealand. — ^Mr.  H.  G.  Dering,  M.  V.  O.,  counselor  of  the 
embassy  of  Great  Britain  to  the  Government  of  Italy,  delegate  to 
the  permanent  committee  of  the  International  Institute  of  Agri- 
culture. 

Mauritius. — Mr.  H.  G.  Dering,  M.  V.  O.,  counselor  of  the  embassy 
of  Great  Britain  to  the  Government  of  Italy,  delegate  to  the  per- 
manent committee  of  the  International  Institute  of  Agriculture. 

Union  of  South  Africa. — Mr.  J.  B.  Moffat,  director  of  the  census. 

Greece. — M.  D.  Caclamanos,  charge  d'affaires  of  Greece  to  the 
Government  of  Italy,  delegate  to  the  permanent  committee  of  the 
International  Institute  of  Agriculture;  M.  Isaakides,  agriculturist. 

Guatemala. — ^M.  Jules  Montefiore,  consul  general  of  Guatemala  at 
Rome,  delegate  to  the  permanent  committee  of  the  International 
Institute  of  Agriculture. 

Italy. — Marquis  R.  Cappelli,  president  of  the  International  Institute 
of  Agriculture,  vice  president  of  the  Chamber  of  Deputies ;  Prof. 
Vittorio  Emanuele  Orlando,  deputy  in  Parliament;  Count  Francesco 
Guicciardini,  deputy  in  Parliament;  Dr.  Edoardo  Pantano,  deputy 
in  Parliament;  Dr.  Edoardo  Ottavi,  deputy  in  Parliament,  president 
of  the  Society  of  Italian  Agriculturists;  Dr.  Vincenzo  Magaldi,  vice 
president  of  the  council  of  administration  of  the  national  institute 
of  insurance;  Prof.  Dr.  Bartolomeo  Moreschi,  director  general  of 
agriculture;  Prof.  Dr.  Giovanni  Montemartini,  director  general  of 
statistics  and  labor;  Prof.  Dr.  Vincenzo  Giuffrida,  director  general 
of  credit  and  of  markets;  Prof.  Dr.  Michele  Carlucci,  chief  inspector 
of  viticulture  and  plant  diseases;  Prof.  Palazzo,  director  of  the 
bureau  of  meteorology  and  geodynamics. 

Erithrea  and  Italian  Somaliland. — M.  B.  Chimirri,  deputy  in  Par- 
liament, delegate  to  the  permanent  committee  of  the  International 
Institute  of  Agriculture;  M.  M.  Abbiate,  deputy  in  Parliament; 
M.  Alfredo  Baccelli,  deputy  in  Parliament;  Prof.  E.  de  Marinis, 
deputy  in  Parliament;  Marquis  U.  di  Sant'Onoffio  del  CastUlo, 
deputy  in  Parliament. 

Tripoli  and  Cyrenaica. — 

Japan. — M.  Otojiro  Sasano,  charge  d'affaires  of  Japan  to  the  Gov- 
ernment of  Italy,  delegate  to  the  permanent  committee  of  the  Inter- 


INTERNATIONAL  INSTITUTE   OP  AGEICULTURE   AT   ROME.  15 

national  Institute  of  Agriculture;  M.  Teizo  Ito,  chief  of  the  sectioj  of 
agricultural  industry  of  the  ministry  of  agriculture  and  commerce. 

Luxemburg. — M.  O.  Bolle,  delegate  to  the  permanent  committee  of 
the  International  Institute  of  Agriculture. 

Mexico. — 

Montenegro. — M.  E.  Popovitch,  consul  general  of  Montenegro  at 
Rome;  M.  G.  Volpi,  minister  plenipotentiary  of  His  Majesty  the  King 
of  Italy,  delegate  to  the  permanent  committee  of  the  International 
Institute  of  Agriculture. 

Nicaragua. — M.  V.  E.  Bianchi,  consul  general  of  Nicaragua  at 
Rome,  delegate  to  the  permanent  committee  of  the  International 
Institute  of  Agriculture. 

Norway. — M.  Thor  von  Ditten,  minister  plenipotentiary  of  Norway 
to  His  Majesty  the  King  of  Italy;  Dr.  A.  Fjelstad,  delegate  to  the 
permanent  committee  of  the  International  Institute  of  Agriculture. 

Paraguay. — Prof.  Orazio  Comes,  director  of  the  Agricultural  High 
School  at  Portici,  delegate  to  the  permanent  committee  of  the  Inter- 
national Institute  of  Agriculture. 

Netherlands. — M.  H.  de  Weede,  minister  plenipotentiary  of  the 
Netherlands  to  His  Majesty  the  King  of  Italy,  degelate  to  the  per- 
manent committee  of  the  International  Institute  of  Agriculture; 
Prof.  Dr.  J.  Ritzema  Bos,  director  of  the  Institute  of  Phytopathology 
at  Wageningen. 

Dutch  Indies. — 

Peru. — M.  Louis-Dop,  vice  president  of  the  International  Institute 
of  Agriculture. 

Persia. — M.  A.  del  Gallo,  Marquis  de  Roccagiovine,  delegate  to  the 
permanent  committee  of  the  International  Institute  of  Agriculture. 

Portugal. — M.  F.  E.  Leao,  minister  plenipotentiary  of  Portugal  to 
His  Majesty  the  King  of  Italy. 

Roumania. — M.  Georges  Lucasievicz,  secretary  general  of  the 
ministry  of  agriculture  and  domains;  M.  Demetre  C.  Pennesco,  coun- 
cilor of  the  legation  of  Roumania  to  the  Government  of  Italy,  delegate 
to  the  permanent  committee  of  the  International  Institute  of  Agri- 
culture; M.  Georges  Arion,  agricultural  engineer,  entomologist  of 
the  ministry  of  agriculture. 

Russia. — His  Excellency  A.  Yermoloff,  secretary  of  state;  His 
Excellency  M.  G.  Zabiello,  councilor  of  state,  consul  general  of  Russia 
at  Rome,  delegate  to  the  permanent  committee  of  the  International 
Institute  of  Agriculture;  Prof.  P.  I.  Broounoff,  director  of  the  bureau 
of  meteorology  of  the  scientific  committee  of  the  general  direction  of 
agrarian  organization  and  of  agriculture;  M.  A.  de  Jaczewski,  cham- 
berlain of  His  Majesty  the  Emperor,  director  of  the  bureau  of 
mycology  and  of  phytopathology  of  the  scientific  committee  of  the 
general  direction  of  agrarian  organization  and  of  agriculture;  M.  A. 
A.  Silantieff,  expert  in  ornithology,  attache  of  the  department  of 
agriculture. 

Salvador. — Dr.  C.  M.  de  Cespedes  y  Quesada. 

San  Marino. — His  Excellency  M.  L.  Luzzatti,  minister  of  state  of 
the  Kingdom  of  Italy,  delegate  to  the  permanent  committee  of  the 
International  Institute  of  Agriculture. 

Servia. — M.  Carlo  Scotti,  consul  general  of  Servia  at  Rome,  delegate 
to  the  permanent  committee  of  the  International  Institute  of  Agricul- 
ture. 


16  rN"TEE]SrATIO]SrAL  INSTITUTE   OF  AGKICULTUEE   AT  EOME. 

Sweden. — Baron  C.  N.  D.  de  Bildt,  minister  plenipotentiary  of 
Sweden  to  His  Majesty  the  King  of  Italy,  delegate  to  the  permanent 
committee  of  the  International  Institute  of  Agriculture ;  Prof.  Juhlin 
Dannfelt,  secretary  of  the  Royal  Academy  of  Agriculture  at  Stock- 
holm; Prof.  Jakob  Eriksson,  chief  of  the  section  of  agricultural  botany 
of  the  Central  Institute  for  Agricultural  Experimentation  at  Stock- 
holm. 

Switzerland. — Dr.  Jean  Baptiste  Pioda,  minister  plenipotentiary  of 
Switzerland  to  His  Majesty  the  King  of  Italy;  Dr.  Ernest  Laur,  chef 
du  secretariat  of  the  Union  of  Swiss  Peasants  at  Brugg.     (Aargau.) 

Uruguay. — His  Excellency  M.  Rufino  T.  Dominguez,  minister 
plenipotentiary  of  Uruguay  to  His  Majesty  the  King  of  Italy. 

Recapitulation  of  the  Reports,  Debates,  and  Resolutions  of 
THE  Fourth  General  Assembly. 

The  Fourth  General  Assembly  of  the  International  Institute  of 
Agriculture  convened  in  Rome,  Italy,  on  May  6,  1913.  At  the  open- 
ing meeting  the  Hon.  Vittorio  Emanuele  Orlando,  first  delegate  of 
Italy,  was  elected  president  of  the  assembly.  Baron  Bernhard  Yon 
Ehrenfels,  first  delegate  of  Austria,  and  M.  de  Vuyst,  first  delegate 
of  Belgium,  were  elected  vice  presidents. 

The  assembly  then  named  four  commissions  or  committees  to  report 
to  the  assembly  on  the  several  questions  brought  up  for  action,  as 
follows : 

Commission  I.  Administration  and  finance. — To  this  commission 
were  submitted  the  following  reports  from  the  permanent  committee 
of  the  institute:  Report  by  the  president  of  the  institute.  Marquis 
Cappelli,  on  the  work  performed  by  the  institute  during  the  past  two 
years ;  report  by  M.  Fialho,  delegate  of  Brazil,  on  the  finances  of  the 
institute. 

Commission  II.  General  statistics. — This  commission  considered 
the  following  reports  from  the  permanent  committee:  Report  by  Dr. 
Mtiller,  delegate  of  Germany,  on  crop-reporting  and  agricultural 
statistics;  report  by  M.  Zabiello,  delegate  of  Russia,  on  coimnercial 
statistics  (exports,  imports,  stocks  and  prices);  report  by  Chev. 
de  Pozzi,  delegate  of  Austria,  on  the  statistics  of  live  stock. 

Commission  III.  Agricultural  intelligence  and  plant  diseases. — To 
this  commission  were  submitted,  on  behalf  of  the  permanent  com- 
mittee, a  report  by  M.  Pioda,  delegate  of  Switzerland,  on  the  statistics 
of  fertilizers;  a  report  by  M.  Louis-Dop,  delegate  of  France,  vice 
president  of  the  institute,  on  the  organization  of  an  international 
service  of  agricultural  meteorology;  a  report  by  Prof.  Cuboni,  delegate 
of  Ethiopia,  on  an  international  agreement  for  the  control  of  plant 
diseases;  and  reports  by  M.  de  Miklos,  delegate  of  Hungary,  on  the 
results  of  an  inquiry  into  the  measures  taken  by  the  adhering  coun- 
tries for  the  protection  of  useful  birds  and  on  dry  farming. 

Commission  IV.  Agricultural  cooperation. — This  commission  con- 
sidered a  report  by  M.  BoUe,  delegate  of  Belgium,  on  insurance 
against  damage  to  crops  by  hail,  and  a  report  by  Chev.  de  Pozzi, 
delegate  of  Austria,  on  the  statistics  of  agricultural  cooperation. 

The  president  called  on  the  spokesman  of  each  delegation  to  state 
on  which  commissions  such  delegation  wished  its  members  to  serve. 


INTERNATIONAL  INSTITUTE   OP  AGEICULTUKE  AT   EOME.  17 

Dr.  True,  as  chairman  of  the  American  delegation,  made  the  following 
announcement : 

Commission  I :  Dr.  True  and  Mr.  Lubin. 

Commission  II:  Dr.  True,  Prof.  Pugsley,  Mr.  Lubin. 

Commission  III :  Dr.  True,  Prof.  Pugsley,  Mr.  Ewing. 

Commission  IV:  Dr.  True,  Prof.  Pugsley,  Mr.  Lubin. 

The  commissions  then  proceeded  to  elect  their  presidents,  vice 
presidents,  and  reporters,  as  follows : 

Commission  I :  President,  M.  Chimirri,  delegate  of  the  Italian  col- 
onies; vice  president.  Dr.  True,  delegate  of  the  United  States; 
reporter,  Baron  Hans  de  Cnobloch,  delegate  of  Austria. 

Commission  II:  President,  M.  Delbrlick,  delegate  of  Germany; 
vice  president,  M.  de  Rubin ek,  delegate  of  Hungary;  reporter, 
M.  Lesage,  delegate  of  France. 

Commission  III:  President,  Sir  Sydney  Olivier,  delegate  of  Great 
Britain  and  Ireland;  vice  president,  M.  de  Jaczewski,  delegate  of 
Russia;  reporters,  M.  Brounoff,  delegate  of  Russia;  M.  Foex,  dele- 
gate of  France;    M.  Laur,  delegate  of  Switzerland. 

Commission  IV:  President,  M.  Decharme,  delegate  of  France; 
vice  president,  M.  de  Bernat  de  Korlat,  delegate  of  Hungary; 
reporter,  M.  Girona  y  Villanova,  delegate  of  Spain. 

The  meeting  then  adjourned. 

On  Saturday,  May  10,  and  Monday,  May  12,  meetings  of  the 
general  assembly  were  held,  at  which  the  reports  and  recommendations 
of  the  four  commissions  were  brought  in  and  considered  and  various 
resolutions  adopted.  The  business  thus  transacted  by  the  com- 
missions and  the  general  assembly  was  divided  under  the  following 
heads : 

1.  Review  of  the  work  of  the  institute  since  the  last  general 
assembly. 

2.  Financial  status  of  the  institute. 

3.  Status  and  development  of  the  crop-reporting  and  agricultural 
statistical  work  of  the  institute. 

4.  Status  and  development  of  the  work  of  the  institute  in  the  field 
of  commercial  statistics  (exports,  imports,  stocks,  and  prices). 

5.  Proposal  for  an  international  service  of  statistics  on  live  stock. 

6.  Proposal  for  an  international  service  of  statistics  on  fertilizers. 

7.  Statistics  of  agricultural  cooperation. 

8.  Statistics  of  crop  insurance  against  damage  by  hail. 

9.  Status  of  the  institute's  work  in  promoting  an  international 
service  of  agricultural  meteorology. 

10.  Proposal  for  an  international  agreement  for  the  control  of 
plant  diseases. 

11.  Protection  of  useful  birds. 

12.  Dry  farming. 

It  will  be  convenient  to  deal  with  these  matters  under  their  sepa- 
rate heads. 

S.  Doc.  196,  63-1 2 


18  INTERNATIONAL  INSTITUTE   OF   AGEICULTUEE  AT   EOME. 

1.  REVIEW  OF  THE  WORK  OF  THE    INSTITUTE  SINCE  THE  LAST  GENERAL 

ASSEMBLY. 

The  president  of  the  institute,  Marquis  Cappelli,  in  his  report  on 
the  work  of  the  institute,  pointed  out  that  since  the  last  general 
assembly  (May,  1911)  five  more  Governments  have  ratified  the 
treaty  oi  June  7,  1905;  i.  e.,  Paraguay,  Union  of  vSouth  Africa,  Guate- 
mala, Dutch  East  Indies,  Tripolitania  and  Cyrenaica,  bringing  up 
the  number  of  adhering  countries  to  53,  Since  that  date  the  English 
edition  of  the  institute's  publications  has  been  placed  on  a  permanent 
and  self-supporting  basis.  In  accordance  with  the  proposal  sub- 
mitted by  the  American  delegation  to  the  assembly  in  1911,  the 
Congress  of  the  United  States  appropriated  $5,000  as  a  contribution 
toward  the  cost  of  translating  and  printing  this  edition,  and  the 
subscriptions  of  Great  Britain  and  tne  British  colonies  cover  the 
other  half  of  the  expenses.  In  accordance  with  the  same  s^^stem  an 
Italian  edition  was  brought  out  last  year,  the  cost  of  which  is  met 
by  subscriptions  and  by  a  sum  of  25,000  francs,  which  the  Italian 
Government  has  promised  to  provide  for.  The  delegates  of  the 
German-spealdng  States  prepared  an  elaborate  plan  by  which,  with 
the  generous  assistance  of  their  governments,  they  have  secured  the 
sum  of  50,000  francs  to  cover  the  cost  of  the  German  edition.  A 
Spanish  edition,  for  which  Ch^le  and  .^gentina  have  already  guaran- 
teed substantial  sums,  and  to  which  Spain  will  also  contribute,  has 
recently  appeared.  The  Hungarian  Government  and  the  Societ}^  of 
Hungarian  Farmers  have  arranged  for  an  edition  in  the  language  oi 
that  country.  Thus  the  bulletins  of  the  institute  now  appear  in  six 
laiiguages— French,  English,  German,  Italian,  Spanish,  and  Hun- 
garian. 

Reviewing  the  financial  situation  of  the  institute  the  president 
pointed  out  that  the  international  treaty  of  1905  fixed  the  unit  of 
contribution  payable  by  the  adhering  countries  at  a  sum  not  to  exceed 
2,500  francs  per  annum,  with  the  proviso  that  during  the  first  two 
years  the  contribution  would  be  1,500  francs  (art.  10  of  the  treaty). 
According  to  the  group  in  which  an  adhering  country  decides  to  rank, 
the  number  of  units  of  contribution  which  it  pays  varies  from  1  to  16. 
Although  the  first  two  years  (during  which  the  unit  of  contribution 
was  not  to  exceed  1,500  francs)  expired  three  years  ago,  the  institute 
has  not  hitherto  asked  that  the  unit  be  raised  to  the  2,500  francs  pro- 
vided for  in  the  treaty;  but  now  the  needs  of  the  institute  require 
that  this  be  done.  The  institute  therefore  requests  the  Governments 
that  the  unit  of  contribution  may  be  raised  to  2,500  francs,  begin- 
ning in  1914. 

The  president  then  went  on  to  review  the  work  done  by  the  several 
bureaus.  He  called  attention  to  a  new  and  important  publication 
prepared  by  the  bureau  of  the  secretary  general,  the  Yearbook  of 
Agricultural  legislation,  containing  a  collection  of  all  the  laws  relating 
to  agriculture  promulgated  in  the  whole  world  during  the  year  and 
provided  with  an  index  arranged  according  to  subject  matter  and 
countries.  Considering  to  what  an  extent  legislation  is  now  con- 
cerned with  such  matters  as  small  holdings,  reafforestation,  farm 
improvement  and  land  reclamation,  agricultural  statistics,  coopera- 
tion, credit  and  insurance  for  the  farm,  and  with  provisions  more  or 
less  closely  related  to  the  technique  of  farming,  the  control  of  plant 


INTEKNATIONAL  INSTITUTE   OF  AGEICULTUEE  AT   ROME.  19 

diseases,  the  promotion  and  protection  of  the  trade  in  the  various 
staples,  etc.,  it  is  evident  that  this  collection  will  be  of  real  value  to 
legislators  and  students  of  these  subjects.  The  yearbook  for  1911 
was  published  at  the  close  of  last  year;  that  for  1912  has  just  been 
issued. 

The  work  of  the  bureau  of  general  statistics  has  considerably- 
increased  during  the  last  two  years,  and  the  president  noted  wHh 
satisfaction  that  the  institute's  crop  reports  are  now  recognized  as 
the  authoritative  reports  by  the  press  of  the  world,  and  that  on  all 
the  market  centers  contracts  relating  more  especially  to  cereal  crojjs 
are  being  based  on  the  institute's  forecasts  and  reports.  While  it  is 
true  that  a  number  of  States  are  not  yet  adequately  organized  to 
provide  reliable  crop  statistics,  yet  the  propaganda  carried  on  by  the 
institute  showing  the  practical  utility  lor  each  and  all  of  such  uni- 
form statistics  has  already  been  the  means  of  securing  notable 
improvements  in  this  service  in  the  several  countries  and  will  doubt- 
less bring  about  the  desired  results  in  all  the  States.  During  the 
last  two  years  the  information  service  has  been  extended  to  sugar 
beets,  sugar  cane,  vines,  coffee,  tobacco,  flax,  and  silk,  in  accordance 
with  the  decisions  of  the  general  assembly  in  1911.  Reports  on  these 
staples  were  first  given  in  the  crop-reporting  bulletin  in  January, 
1912. 

During  this  same  period  the  bureau  has  organized  the  service  on 
commercial  statistics.  The  Commerical  Bulletin  began  to  appear  by 
way  of  trial  in  January,  1912.  In  March,  1913,  it  was  given  pub- 
licity and  is  now  incorporated  with  the  Bulletin  of  Agricultural 
Statistics.  The  information  it  gives  relates  to  exports  and  imports, 
visible  stocks,  and  the  prices  of  the  five  cereal  crops  and  cotton  on 
the  principal  markets  of  the  world. 

The  first  volume  of  the  International  Yearbook  of  Agricultural 
Statistics  was  published  by  the  institute  toward  the  end  of  1912. 
The  president  says : 

It  has  been  highly  appreciated  by  the  governments  and  by  men  of  science. 

Speaking  of  the  work  of  the  bureau  of  agricultural  intelligence  and 
plant  diseases,  the  president  stated: 

When  we  consider  the  extent  of  the  material  it  has  to  examine,  we  earily  under- 
stand how  complex  is  the  work  of  this  division:  Physics;  chemistry;  microbiology  of 
the  soil  and  of  plants;  hydraulics,  embracing  the  vast  subject  of  land  reclamation 
and  farm  improvements;  agricultural  meteorology,  a  new  science  of  capital  impor- 
tance; fertilizers  and  manures,  with  the  discoveries  constantly  being  made  in  that 
field;  all  the  special  crops  of  different  zones,  with  the  studies  of  which  each  of  them 
is  the  object;  rural  engineering  and  new  inventions  in  agricultural  machinery;  rural 
economy,  with  its  important  phase  of  farm  bookkeeping;  agricultural  industries;  and, 
finally,  the  immense  field  of  plant  diseases.  *  *  *  Our  ideal  would  be  that  every 
important  invention,  all  original  research,  every  result  arrived  at  in  the  theory  or 
practice  of  agriculture  be  reported  in  our  bvilletin,  so  that  our  readers  may  be  sure 
that  there  is  nothing  new  and  really  important  in  technical  agriculture  but  is  brought 
under  their  eye.     *    *    *    We  have  made  considerable  progress  toward  our  ideal. 

The  report  went  on  to  show  that  in  accordance  with  the  author- 
ization received  from  the  last  assembly  the  institute  has,  through 
the  medium  of  the  Governments,  requested  the  collaboration  of  the 
most  eminent  authorities  in  the  theory  and  practice  of  agriculture 
in  every  country,  and  this  has  caused  an  appreciable  improvement 
in  the  work.  Besides  pubhshing  its  regular  bulletin,  the  bureau  of 
agricultural  intelligence  has  given  great  attention  to  the  organiza- 


20  INTERNATIONAL  INSTITUTE   OF  AGEICULTURE  AT  EOME. 

tion  of  an  information  service,  which  has  already  answered  several 
hundred  inquiries  addressed  it  by  the  adherinc^  Governments. 

Agricultural  meteorology  has  also  eceived  the  diligent  attention  of 
this  bureau,  and  in  this  work  the  institute  has  had  the  cordial  coop- 
eration of  the  international  meteorological  committee,  which  has  drawn 
up,  at  the  request  of  the  institute,  a  plan  for  the  organization  of  an 
international  service  of  agricultural  meteorology. 

Finally,  the  president  called  the  attention  of  the  assembly  to  the 
importance  of  the  work  done  by  the  bureau  of  economic  and  social 
institutions  (agricultural  cooperation,  insurance,  and  credit),  as  in- 
stanced by  the  interest  its  publications  have  aroused  in  the  United 
States  in  drawing  attention  to  the  European  systems  of  rural  cooper- 
ative finance.     He  said: 

The  institute  is  making  useful  propaganda,  of  which  a  most  significant  result  will  be 
seen  in  Rome  in  a  few  days'  time.  The  wide  circiilation  of  the  institute's  bulletins  in 
the  United  States  has  drawn  the  attention  of  that  great  country  to  agricultural  coop- 
erative credit.  An  official  commission,  appointed  to  study  this  question,  will,  during 
the  session  of  the  general  assembly,  visit  Rome  as  its  starting  place,  from  whence  it  will 
proceed  to  those  countries  of  Europe  in  which  agricultural  credit  is  most  highly  de- 
veloped and  best  organized.  The  coming  of  this  commission  is  one  of  the  proofs  of 
the  practical  utility  of  the  institute. 

2.  FINANCIAL    STATUS    OF   THE    INSTITUTE. 

In  conformity  with  article  5  of  the  treaty  of  June  7,  1905,  which 
established  the  institute,  it  rests  with  the  assembly  to  fix  the  limits 
of  the  expenditure  which  may  be  incurred  by  the  permanent  com- 
mittee until  its  next  session,  and  to  audit  and  approve  the  accounts  of 
the  institute.  To  enable  the  assembly  to  discharge  this  important 
duty  a  full  report  on  the  financial  situation  of  the  institute,  along 
with  the  estimates  of  expenditures  and  receipts  for  1913,  was  pre- 
sented on  behalf  of  the  permanent  committee  by  its  reporter,  M.  A. 
Fialho,  delegate  of  Brazil. 

The  income  of  the  institute  for  1911  was  as  follows: 

Francs. 

Contribution  of  His  Majesty  the  King  of  Italy 300, 000. 00 

Quotas  paid  by  the  adhering  Governments: 

Francs. 

First  group  (16  countries) 384, 000.  00 

Second  group  (4  countries) 48,  000.  00 

Third  group  (2  countries) 12,000.  00 

Fourth  group  (13  countries) 39,  000.  00 

Fifth  group  (15  countries) 22,500.00 

505,  500.  00 

Interest 20,512.99 

Sale  of  publications  and  advertisements - 7,  803.  89 

Miscellaneous 1, 078.  57 

Drawn  on  accumulated  reserve 52, 434.  52 

Total 887,  329.  97 

The  expenditures  of  the  institute  for  1911  were  as  follows: 

Francs. 

Personal  services 513,  938.  60 

Care  of  building 19,842.08 

Office  expenses  (including  postage) 61,  411.  35 

Library 46,858.65 

Printing 149, 13L  00 

English  and  Italian  editions  of  bulletins 52, 417.  92 

Permanent  equipment 29,  996.  73 

Miscellaneous 13,  733.  64 

Total 887,329.97 


INTERNATIONAL  INSTITUTE   OF  AGRICULTURE   AT   ROME.  21 

The  income  of  the  institute  for  1912  was  as  follows: 

Francs. 

Contribution  of  His  Maj  esty  the  King  of  Italy 300, 000.  00 

Quotas  paid  by  the  adhering  Governments: 

Francs. 

First  group  (16  countries,  including  United  States) 384,  000.  00 

Second  group  (4  countries) 48,  000.  00 

Third  group  (2  countries) 12,  000.  00 

Fourth  group  (13  countries) 39,  000.  00 

Fifth  group  (15  countries) 22,  500.  00 

505,  500.  00 

Interest 15, 500.  69 

Sale  of  publications  and  advertisements 63, 274.  46 

Miscellaneous 2,  717.  47 

Drawn  on  accumulated  reserve 41,  922.  83 


Total 928,915.45 

The  expenditures  of  the  institute  for  1912  were  as  follows: 

Francs. 

Personal  servdces 526, 863.  51 

Care  of  building. 17,742.16 

Office  expenses  (including  postage) 67,  635.  96 

Library 40, 000, 00 

Printing 126,  710.  51 

Permanent  equipment 13, 000,  00 

Editions  in  English,  Italian,  German,  Hungarian 101, 089.  59 

Interest  paid  on  reserve  fund 15, 465.  69 

Miscellaneous 20, 408.  03 

Total 928,915.45 

The  permanent  committee  submitted  the  estimated  receipts  and 
expenditures  of  the  institute  for  1913,  as  follows: 

Income:  Francs. 

Contribution  of  His  Majesty  the  King  of  Italy 300,  000.  00 

Quotas  paid  by  the  adhering  countries — ■  Francs. 

First  group  (16  countries) 384,000.00 

Second  group  (4  countries) 48,  000.  00 

Third  group  (2  countries) 12, 000.  00 

Fourth  group  (14  countries) 42,  000.  00 

Fifth  group  (16  countries) 24, 000.  00 

510, 000.  GO 

Interest 14,035.00 

Sale  of  publications  and  advertisements 64,  273.  56 

Miscellaneous 1, 000. 00 

Drawn  on  accumulated  reserve 94,  543.44 

Total 983, 852.  00 

Expenditures: 

Personal  services 588,  852. 00 

Care  of  building 16, 800.  00 

Office  expenses  (including  postage) 85,  750.  00 

Library 40, 000.  00 

Printing,  translating,  etc 204,  900. 00 

Perm  anent  equipm  ent 13, 000. 00 

Interest  paid  on  reserve  fund 14, 000. 00 

Miscellaneous 20,  550.  00 

Total 983,852.00 

The  assembly  was  asked  to  approve  these  estimates  and  to  vote  a 
lump  sum  of  1,106,485  francs,  for  the  expenses  of  the  institute  in  1914. 

In  accordance  with  the  proposals  submitted  by  the  reporter,  and 
to  meet  the  requirements  of  the  increasing  work  of  the  institute,  the 


22  INTEEISTATIONAL  INSTITUTE   OF   AGEICULTUEE   AT  EOME. 

assembly  decided  to  ask  the  adhering  Governments  to  increase  their 
contributions  to  the  maximum  provided  for  under  the  treaty  of 
June  7,  1905,  such  increase  to  begm  in  1914.  This  will  raise  the  con- 
tribution payable  by  the  United  States  from  $4,800  to  $8,000. 

The  assembly  approved  the  detailed  statements  of  receipts  and 
expenditures  for  1911  and  1912,  and  the  estimates  for  1913,  and  voted 
the  lump  sum  asked  for  the  years  1914-15,  to  be  expended  at  the 
discretion  of  the  permanent  committee. 

3.    STATUS    AND    DEVELOPMENT    OF    THE     CEOP-EEPOETING    AND    AGEI- 
CULTUEAL    STATISTICAL    WOEK    OF    THE    INSTITUTE. 

As  in  previous  years,  this  was  the  most  important  subject  before 
the  assembly.  The  discussions  in  the  second  commission  under  this 
head  were  based  on  the  report  submitted  on  behalf  of  the  permanent 
committee  by  the  delegate  of  Germany,  Dr.  Miiller. 

In  this  report  Dr.  Muller  places  in  clear  relief  the  great  importance 
of  the  institute's  international  crop-reporting  service  and  of  the 
publication  of  the  summary  figures  on  crop  conditions  and  yields  in 
the  form  of  the  "single  numerical  statement"  fo^  all  the  countries 
supplying  the  required  data.  He  points  out  that  this  is  the  princi- 
pal function  of  the  institute,  and  one  which  can  only  be  performed 
by  such  an  international  body,  created  by  the  nations  for  this  pur- 
pose under  a  special  treaty.     Speaking  on  this  subject  he  says: 

The  crop-reporting  work  is  an  instrument  of  which  the  institute  avails  itself  in 
order  to  accomplish  the  principal  task  intrusted  to  it,  the  solution  of  one  of  the  most 
important  economic  problems  of  modern  times,  to  wit,  the  equitable  and  most  profit- 
able distribution  of  the  world's  agricultural  staples.  *  *  *  The  institute  was 
instructed  to  take  up  statistics  and  crop  reporting  and  use  them  as  an  instrument  in 
performing  its  great  work  of  contributing  toward  the  equitable  formation  of  prices, 
toward  assisting  the  producers  t©  obtain  their  rightful  influence  on  price  formation, 
toward  exercising  a  control  on  markets,  and  protecting  the  farmers  against  illegitimate 
and  harmful  price  manipulation.  *  *  *  Such  an  international  body  as  the 
institute  is  the  essential  requisite  in  the  organization  of  a  service  of  information  and 
control  on  the  production  and  trade  in  the  staples  of  agriculture.  *  *  *  It  has 
been  an  easy  matter  in  the  past  to  express  the  wish  for  an  effective  control,  but  in  the 
absence  of  an  international  center  the  possibility  of  exercising  such  control  did  not 
exist.     The  International  Institute  of  Agriculture  has  made  this  control  possible. 

In  view  of  the  facts  he  sets  forth  the  reporter  urges  that  the  crop- 
reporting  service  be  adequately  provided  with  the  means  it  requires 
to  fully  accomplish  its  important  task. 

He  then  reviews  the  progress  made  in  the  crop-reporting  service 
since  1911.  The  total  number  of  crop  reports  received  from  the 
adhering  countries  rose  from  166  in  1910  to  246  in  1912.  Since  the 
last  general  assembly  Portugal  has  organized  a  service  of  agricultural 
statistics;  Servia  is  replying  partially  to  the  questionaires  of  the 
institute;  Brazil  has  announced  the  organization  of  a  statistical 
bureau  and  has  suppHed  reports  on  coffee;  Costa  Rica  now  sends 
reports  on  cereals,  sugar  cane,  and  coffee;  China  has  begun  to  supply 
statistical  data  for  certain  Provinces;  Spain,  Algeria,  and  Egypt  have 
adopted  the  institute's  mode  of  reporting  on  crop  conditions,  and 
this  has  also  been  done  in  part  by  Canada.  Germany  and  Austria 
have  altered  the  dates  of  their  monthly  crop  reports  in  conformity 
with  the  institute's  requirements.  France,  which  reported  the  con- 
dition of  crops  only  by  departments,  now  gives  a  report  for  France 
as  a  whole.     Chile  has  organized  a  section  of  agricultural  statistics. 


INTEENATIONAL  INSTITUTE   OF  AGRICULTURE   AT   ROME.  23 

Germany  has  extended  the  preliminary  estimates  of  harvest  yield, 
made  one  month  before  the  harvest,  from  Prussia  to  almost  all  the 
confederate  States.  Thus  what  was  promised  in  1910  and  1911  is  in 
part  an  accomplished  fact  in  1912. 

The  report  draws  special  attention  to  the  important  action  taken 
by  Russia  toward  re-forming  her  system  of  agricultural  statistics  with 
a  view  to  the  requirements  of  the  institute.  The  following  official 
communication  to  the  institute  is  quoted: 

The  Imperial  Government  of  Russia,  deeming  it  its  duty  to  contribute,  as  far  as 
possible,  to  the  efforts  made  by  the  International  Institute  of  Agriculture  to  secure 
greater  uniformity  in  agricultural  statistics,  has  recently  given  a  detailed  examina- 
tion to  the  question  of  the  possibility  of  applying  to  the  Russian  system  of  agricul- 
tural statistics  the  numerical  method  of  reporting  crop  conditions  employed  by  the 
institute  in  conformity  with  the  wish  expressed  by  the  general  assembly  in  May, 
1911. 

In  view  of  the  specal  conditions  of  the  country  and  of  the  present  status  of  the 
Russian  agricultural  service  the  Russian  Government  considers  that  full  compliance 
with  the  wishes  of  the  institute  can  only  be  the  result  of  a  thorough  reorganization  of 
this  service.  The  Russian  Government  feels  justified  in  stating  that  this  reform, 
which  has  become  urgent  in  view  of  the  importance  which  statistics  have  acquired 
in  the  economic  and  commercial  relations  between  the  several  countries,  has  been 
decided  on  and  will  be  carried  out  as  promptly  as  possible.  Until  this  reform  haa 
been  effected  the  Russian  Government  has  decided  to  take  all  possible  steps,  even 
those  of  a  temporary  nature,  to  supply  the  institute  regularly  and  at  the  earliest  date 
possible  after  the  returns  have  been  made  with  all  information,  including  reports 
in  percentage  form  on  the  condition  of  crops  and  estimates  of  probable  yield,  which 
are  available  in  the  different  branches  of  the  administration. 

At  present  a  numerical  estimate  of  the  condition  of  the  crops  is  only  made  in  Rus- 
sia once  a  year,  during  the  period  of  growth;  the  original  figures  as  well  as  their  trans- 
lation into  terms  of  a  percentage  of  an  average  yield  can  be,  and  henceforth  will  be, 
communicated  to  the  institute  about  August  15.  This  can  not  yet  be  done  at  an 
earlier  date.  The  regular  substitution  of  reports  expressed  in  figures  for  the  verbal 
reports  now  given  must  necessarily  be  delayed  until  the  crop-reporting  system  is 
based  on  the  new  principles  adopted  in  the  scheme  for  the  reorganization  of  the  Rus- 
sian service  of  agricultural  statistics.  But  the  Russian  Government,  desirous  of  com- 
plying as  soon  as  possible  with  the  requirements  of  the  institute  without  waiting  for 
the  carrying  out  of  the  proposed  reforms,  will  take  the  necessary  steps  to  communicate 
to  the  institute,  as  a  transitory  measure,  about  June  15  and  July  15  of  each  year  the 
numerical  reports  on  the  condition  of  the  crops  and  the  probable  yield  in  so  far  as 
these  data  can  be  leased  on  information  collected  and  collated  by  the  several  branches 
of  the  administration. 

The  reporter  also  quotes  a  statement  made  by  the  delegate  of 
Russia  to  the  permanent  committee  that  this  important  decision  on 
the  part  of  the  Russian  Government  was  taken — 

as  the  result  of  the  propaganda  journey  made  in  Russia  by  Mr.  Lubin,  of  the  letters 
written  by  the  president  of  the  institute  to  the  president  of  the  council  of  ministers  of 
Russia,  and  to  the  initiative  taken  by  His  Excellency  M.  Yermoloff,  delegate  of 
Russia  to  the  general  assembly  of  the  institute. 

The  letter  which  Mr.  Lubin  addressed  on  this  subject  to  the 
minister  of  finance  of  Russia,  His  Excellency  M.  Kokovtzoff,  is 
given  below. 

In  examining  the  work  done  by  the  institute  in  extending  the  crop- 
reporting  service  to  grapes  and  wine,  silk,  tobacco,  sugar  beets  and 
sugar  cane,  flax,  and  coffee,  the  reporter  called  the  attention  of  the 
assembly  to  various  improvements  which  the  governments  should 
introduce  into  their  services  for  these  staples  in  order  to  comply  with 
the  requirements  of  the  institute,  and  called  upon  the  United  States 
to  organize  crop  reports  on  sugar  beets  so  as  to  supply,  at  the  latest 
,  in  October,  an  estimate  of  the  yield. 


24  INTEENATIONAL  INSTITUTE   OF   AGEICULTURE  AT   EOME. 

An  important  work  accomplished  by  the  statistical  bureau  in  1912 
was  the  publication  of  the  first  International  Yearbook  of  Agri- 
cultural Statistics.  This  is  a  collection  of  tables,  systematically 
arranged,  showing  for  a  decade,  and  for  the  countries  adhering  to  the 
institute,  the  area  and  production  of  the  principal  staples  and  the 
actual  number  of  head  oi  live  stock.  It  also  gives  the  area  and  popu- 
lation of  the  countries  dealt  with  and  contains  tables  showing  the 
agricultural  distribution  of  the  land  in  these  countries.  To  facilitate 
comparisons,  all  data  on  area  and  production  have  been  reduced  to 
the  metric  system.  The  reporter  submitted  to  the  assembly  pro- 
posals for  enlarging  the  scope  and  increasing  the  value  of  this  year- 
book. 

The  last  point  considered  in  this  report  was  the  steps  taken  by  the 
institute  to  carry  out  the  wish  expressed  by  the  general  assembly  in 
1911,  that  the  governments  be  invited  to  study  the  question  of  uni- 
fying their  present  systems  of  crop  reporting,  so  as  to  secure  the  com- 
parability required  for  a  perfected  international  information  service. 
The  assembly  in  1911  expressed  the  wish  that  this  question  should  be 
submitted  by  the  permanent  committee  to  the  International  Institute 
of  Statistics,  with  a  view  to  obtaining  its  opinion.  So  far  the  perma- 
nent committee  has  only  carried  out  these  instructions  in  part, 
having  submitted  to  the  International  Institute  of  Statistics  in 
September,  1911,  a  detailed  report  on  international  statistics  of  crop 
conditions.  A  special  committee  was  then  appointed  by  the  Inter- 
national Institute  of  Statistics  for  the  further  study  of  this  question, 
which  will  again  be  brought  up  at  the  next  congress,  to  be  held  in 
Vienna  in  September,  1913,  when  a  further  report  on  the  outstanding 
question  of  the  unification  of  statistics  on  areas  under  cultivation 
and  on  yields  will  be  presented  by  the  International  Institute  of 
Agriculture. 

The  debate  on  Dr.  Miiller's  report  in  the  second  commission  showed 
that  the  preeminent  importance  of  the  crop-reporting  service  was 
fully  recognized  by  the  delegates,  and  the  followmg  resolutions  were 
unanimously  adopted,  and  subsequently  ratified  by  the  general 
assembly  at  its  plenary  meeting  on  May  10: 

1.  The  general  assembly,  in  accordance  with  the  ideas  which  led  to  the  foundation 
of  the  International  Institute  of  Agriculture,  once  more  invites  the  Governments  of 
the  adhering  countries  to  make  all  possible  efforts  to  facilitate  to  the  institute  the 
accomplishment  of  one  of  its  principal  tasks,  that  of  organizing  a  regular  international 
service  of  prompt,  reliable,  and  complete  information  on  plant  and  animal  production, 
and  on  the  consumption  and  trade  in  agricultural  staples  and  their  prices. 

The  general  assembly  therefore  instructs  the  permanent  comnuttee  to  take  the 
requisite  budgetary  steps  to  insure  as  thoroughly  as  possible  the  future  development  of 
the  general  service  of  information  on  the  production,  consumption,  trade  in,  and  prices 
of  agricultural  staples. 

2.  The  general  assembly,  while  taking  cognizance  of  the  improvements  which  a 
number  of  the  adhering  Governments  have  introduced  or  purpose  introducing  in  their 
agricultural  statistical  services,  notes  that  in  order  to  enable  the  institute  to  carry  on 
a  rapid,  complete,  and  effective  crop-reporting  service  the  adhering  Governments  must 
be  called  upon  to  make  yet  further  efforts. 

The  general  assembly  therefore  instructs  the  permanent  committee  to  ascertain  for 
each  product  the  improvements  which  the  several  Governments  should  be  asked  to 
introduce  into  their  statistical  services  so  as  to  place  the  international  crop-reporting 
service  on  a  firm  foundation;  these  studies  shall  be  transmitted  to  each  Government 
with  the  request  that  it  take  the  requisite  steps  to  comply  irith  the  needs  of  the  insti- 
tute's service. 

3.  The  general  assembly,  having  taken  cognizance  with  great  satisfaction  of  the  publi- 
cation of  the  first  volume  of  the  International  Yearbook  of  Agiicultural  Statistics, 


INTERNATIONAL  INSTITUTE   OF  AGRICULTUEE  AT   ROME.  25 

and  approviBg  the  intentions  of  the  permanent  committee  in  the  matter  of  perfecting 
this  publication,  requests  the  Governments  of  the  adhering  countries  to  collaborate 
effectively  with  the  institute  to  the  end  that  this  yearbook  may  become  the  most 
complete  comparative  work  on  the  production,  trade,  consumption,  and  prices  of 
agricultural  products. 

4.  The  general  assembly,  while  thanking  the  International  Institute  of  Statistics 
for  the  favorable  reception  and  thorough  study  it  has  made  of  the  proposals  submitted 
to  it  for  the  unification  of  the  methods  of  reporting  on  crop  conditions,  requests  it  to 
give  its  views  also  on  questions  relating  to  the  unification  of  statistics  on  areas  under 
cultivation,  and  on  estmiates  and  preliminary  and  final  statements  of  harvest  yields, 
so  as  to  give  its  deliberate  opinion  on  these  points  at  its  next  meeting,  to  be  neld  at 
Vienna  in  the  autumn  of  this  year. 

The  general  assembly  instructs  the  permanent  committee  to  draw  up,  as  soon  as  pos- 
sible, a  statement  of  the  reasons  for  unification  and  a  plan  of  organization  for  this  branch 
of  agricultural  statistics  so  that  the  International  Institute  of  Statistics  may  be  informed 
in  due  time  of  the  desiderata  of  the  International  Institute  of  Agriculture  with  a  view 
to  pronouncing  on  them  this  year. 

5.  The  general  assembly  requests  the  adhering  Governments  to  state:  (a)  The 
methods  followed  by  field  agents  in  securing  the  data  for  reports  on  crop  conditions; 
(6)  whether  the  field  agents  merely  give  their  opinion  on  the  appearance  of  the  grow- 
ing crops  at  the  time  of  making  the  report  (as,  for  instance,  in  the  form  of  verbal 
descriptions,  such  as  "good,"  "very  good,"  "pretty  good,"  etc.)  or  whether  they 
express  their  opinion  in  terms  of  estimated  future  yield  per  hectare;  (c)  the  reasons 
which  have  determined  the  adoption  of  the  method  employed  and,  ii  needful,  the 
reasons  which  would  prevent  them  from  adopting  the  method  favored  by  the  institute. 

6.  The  general  assembly  invites  the  permanent  committee  to  provide  that  in 
future  a  clear  distinction  be  drawn  in  the  institute's  crop  reports  between  estimates 
of  yield  made  before  the  harvest  and  those  returns  made  after  the  harvest. 

4.   STATUS   AND  DEVELOPMENT   OF  THE    INSTITUTE'S   SERVICE   ON   COM- 
MERCIAL   STATISTICS    (exports,    IMPORTS,   STOCKS,   AND    PRICES). 

The  delegate  of  Russia,  M.  Zabiello,  on  behalf  of  the  permanent 
committee,  submitted  a  report  on  this  subject  showing  the  steps 
taken  by  the  institute  to  carry  out  the  decisions  arrived  at  by  the 
general  assembly  in  1911.  In  accordance  with  these  decisions  the 
institute  now  publishes  in  its  statistical  bulletin  a  section  dealing 
with  exports,  imports,  stocks,  and  prices  of  the  five  cereal  crops  and 
cotton.  This  work  is  done  with  special  reference  to  the  needs  of 
farmers,  and  statistics  on  the  production  of  the  staples  and  on  the 
trade  in  them  are  published  side  by  side  in  order  that  farmers  may 
have  before  them  m  convenient  form  "all  the  factors  which  go  to 
determine  the  status  of  the  world's  markets."  In  the  course  of  the 
debate  on  this  report  before  the  second  commission  Mr.  Lubin  read 
a  paper  in  which  he  urged  that  an  effort  should  be  made  to  include 
in  the  institute's  price  bulletin,  side  by  side  with  the  quotations  for 
the  ruling  prices  of  the  staples  on  the  world's  market  centers,  the 
principal  factors  which  go  to  make  up  those  prices,  such  as  the  price 
paid  to  the  farmer,  cost  of  transportation  by  rail  and  sea,  insurance, 
broker's  commission,  etc.  He  called  attention  to  the  influence  of 
the  cost  of  carriage  not  only  on  the  price  of  the  product  at  the  world's 
market  center,  but  also  on  the  home  price,  and  the  consequent  need 
of  giving  in  the  bulletin  the  cost  of  charters  in  order  to  make  the 
price  quotations  intelligible  and  helpful  to  the  reader.  He  indicated, 
moreover,  that  the  institute  might  perform  valuable  work  toward 
lowering  the  cost  of  charters  by  supplying  information  required  by 
shipping  companies  in  order  to  insure  the  regular  succession  of  out- 
going and  return  cargoes.  With  reference  to  this  paper  (given 
below)  the  second  commission  decided  that  the  statistical  bureau 
should  make  a  thorough  study  of  all  the  factors  which  go  to  deter- 


26  INTEElSrATIOiTAL  IKSTITUTE    OF   AGEICULTURE   AO'   EOME. 

mine  the  price  of  the  staples  on  the  several  market  centers,  as  pre- 
liminary to  giving  these  factors  in  the  price  bulletin  when  sufficiently 
prepared  to  do  so  effectively. 

I'he  following  resolutions  were  adopted  by  the  second  commission 
and  approved  by  the  general  assembly: 

1.  The  general  assembly  instructs  the  permanent  committee  to  continue  the  monthly 
publication  of  information  on  imports,  exports,  visible  stocks,  and  prices  for  the  five 
cereals  (wheat,  rye,  oats,  barley,  and  maize)  and  for  cotton,  as  now  supplied  by  the 
Governments  to  the  institute,  while  introducing  into  this  publication  those  modifi- 
cations which  may  be  recognized  as  necessary  for  perfecting  this  service. 

The  institute  will  communicate  with  the  several  Governments  to  obtain  their 
consent  to  utilize  for  its  reports  on  visible  stocks  and  prices,  in  default  of  official  data, 
information  coming  from  private  sources,  in  conformity  with  article  21  of  the  by-laws. 

2.  The  institute  is  instructed  to  continue  its  study  on  the  trade  in  cereals  and  the 
customhouse  statistics  of  the  same  with  a  view  to  submitting  proposals  to  the  next 
general  assembly  for  the  improvement  of  the  statistics  on  imports  and  exports  in  the 
matter  of  uniform  classification  and  comparability  of  figures.  The  proposals  to  be 
submitted  will  aim  more  especially  at  uniformity  in  the  definitions  of  "general" 
trade,  "special"  trade,  and  goods  in  transit  (bonded  warehouse  and  temporary  admis- 
sion), and  to  the  classification  of  goods  according  to  country  of  origin  and  ultimate 
destination. 

The  adh€a"ing  Governments  are  requested  to  supply  the  institute  with  the  data  it 
requires  on  a  uniform  plan  drawn  up  by  the  permanent  committee  concerning  the 
organization  of  customhouse  statistics  in  their  respective  countries  and  the  mode  of 
securing  the  returns. 

The  data  supplied  by  the  Governments  will  be  used  as  a  basis  for  the  study  of  cus- 
tomhouse statistics  which  the  institute  is  to  make,  in  which  it  will  also  take  into 
account  the  decisions  arrived  at  by  the  congresses  on  customhouse  statistics. 

3.  The  general  assembly  once  more  calls  on  the  adhering  Governments  to  report, 
even  if  it  be  only  experimentally,  on  invisible  stocks  (residue  of  the  last  harvest  still 
in  farmers'  hands)  for  the  five  cereals  above  mentioned  once  a  year  at  the  date  of 
the  first  numerical  estimate  of  probable  harvest  yield;  that  is  to  say,  one  month  before 
the  harvest.  The  Governments  are  requested  to  communicate  the  results  of  this 
inquiry  to  the  institute,  which  will  only  publish  the  same  after  obtaining  the  consent 
of  the  respective  Governments. 

4.  The  general  assembly  also  reiterates  its  request  to  the  adheriag  Governments 
to  improve  their  statistics  of  information  on  Aosible  stocks  for  the  five  aforementioned 
cereals  and  to  organize  a  monthly  service  for  this  purpose,  if  they  have  not  already 
done  so. 

5.  The  institute  is  instructed  to  pursue  the  study  it  has  undertaken  on  the  question 
of  prices,  taking  as  its  basis  for  this  work  a  detailed  study  on  the  organization  of  the 
principal  markets,  their  commercial  usages,  and  the  factors  which  go  to  make  up  the 
price.  The  institute,  acting  under  article  21  of  the  by-laws,  and  with  the  consent  of 
the  Governments  concerned,  shall  address  itself  for  this  purpose  to  institutions  of  a 
nonofficial  character  and  even  to  private  experts,  who  will  supply  the  information 
required  in  the  form  of  monographs  on  the  organization  of  each  of  the  several  markets. 

5.    PROPOSAL  FOR  AN  INTERNATIONAL   SERVICE   OF  STATISTICS    OF  LIVE 

STOCK. 

The  delegate  of  Austria,  Chev.  de  Pozzi,  submitted  a  report  on 
this  subject  on  behalf  of  the  parmanent  committee  in  which  he 
pointed  out  that  the  crisis  in  the  meat  trade,  which  has' made  itself 
felt  for  some  time  past  in  Europe,  and  is  already  affecting  the  trans- 
oceanic ccuntries,  has  made  it  a  matter  of  great  importance  to  obtain 
the  main  basis  for  an  inquiry  into  the  cause  of  the  decline  in  the 
supp^'y  a^  c(  mpare  t  the  c  emand,  a  basis  which  at  present  is  lack- 
in;  ,  as  tiie  numbci  o  head  of  live  stock  available  for  the  world's 
maikets  is  unknown  owing  to  the  defective  organization  of  the  sta- 
tistics of  live  stock  in  the  several  countries.  For  these  reasons  the 
institute  considers  a  reform  in  these  statistics  a  matter  of  urgent 
necessity. 


INTEENATIONAL  INSTITUTE   OF   AGKICULTUEE   AT   ROME.  27 

This  report  was  the  subject  of  an  animated  debate  in  the  second 
commission.  Some  delegates  favored  the  adoption  of  a  uniform 
date  for  the  census  of  Mve  stock,  while  others  considered  that  a  cer- 
tain latitude  should  be  left  to  the  Governments  in  selecting  the  date 
most  convenient  to  each,  or  which  would  coincide  with  the  period 
at  which  the  number  of  head  of  live  stock  is  at  its  maximum  m  the 
several  countries.  The  second  commission  finally  decided  on  a 
statement  (No.  3  of  the  subjoined  resolutions)  which  satisfies  both 
requirements,  calling  for  the  census  to  be  made  within  a  lapse  of 
time  brief  enough  to  insure  practical  uniformity,  but  at  a  date  to  be 
determined  by  each  Government,  i.  e.,  within  the  period  of  four  months 
comprised  between  December  and  April.  This  proposal  met  with 
unanimous  consent. 

The  resolutions  submitted  by  the  second  commission,  and  unani- 
mously adopted  by  the  general  assembly  at  its  plenary  meeting  on 
Saturday,  May  10,  were  the  following: 

1.  The  general  assembly  considers  that  it  is  absolutely  necessary  in  both  national 
and  international  interests  that  each  country  should  possess  statistics  of  live  stock.  It 
calls  on  those  countries  which  do  not  possess  such  a  statistical  service,  or  in  which  it 
is  inadequately  organized,  to  comply  with  the  requirements  of  an  international  infor- 
mation service  to  undertake,  as  rapidly  as  possible,  the  steps  necessary  to  organize 
such  statistical  service  in  conformity  with  the  wishes  expressed  by  the  institute. 

2.  The  general  assembly  is  of  the  opinion  that  statistics  of  live  stock  shoiild  state 
each  year,  as  far  as  possible,  the  number  of  heads  of  each  kind  and  for  each  of  the 
categories  mentioned  under  resolution  No.  4.  If  the  organization  of  so  detailed  a 
system  of  statistics  should  not  seem  possible  at  present  for  certain  countries,  the  gen- 
eral assembly  is  of  opinion  that  the  statistics  of  live  stock  should  include  for  each 
of  these  countries,  beginning  in  1920,  a  decennial  census  and  a  more  summary  annual 
report. 

3.  The  general  assembly  is  of  the  opinion  that  the  adhering  States  should  adopt  for 
their  annual  statistical  reports  and,  when  needful,  for  their  periodic  census,  a  date 
comprised  within  the  months  from  December  to  April,  and  should  publish  at  least 
the  preliminary  returns  within  three  months  of  gathering  them. 

4.  The  general  assembly  is  of  the  opinion  that  the  adhering  countries  should  adopt 
a  classification  which,  while  suited  to  their  own  requirements,  would  allow  of  abstract- 
ing statistical  data  under  the  following  heads: 

(a)  Horses:  1,  foals;  2,  stallions  for  reproduction;  3,  horses  not  comprised  in  the 
above  categories. 

(6)  Cattle:  1,  animals  under  1  year  old;  2,  young  oxen,  bulls,  and  heifers;  3,  cows; 
4,  bulls;  5,  oxen. 

(c)  Sheep:  1,  lambs  under  1  year  old;  2,  rams  over  1  year  old;  3,  ewes  over  1  year  did; 
4,  sheep  over  1  year  old. 

(d)  Pigs:  1,  young  pigs;  2,  pigs  being  fattened;  3,  sows;  4,  hogs. 

(e)  Goats:  Total  number. 

5.  The  general  assembly  instructs  the  permanent  committee  to  submit  to  the  next 
general  assembly  a  detailed  report  on  the  status  of  the  statistics  of  live  stock  in  the 
several  countries. 

6.  The  general  assembly  expresses  the  opinion  that  the  statistics  of  live  stock  should 
be  supplemented  by  the  publication  of  information  as  detailed  as  possible  on  the  con- 
sumption and  trade  in  meat  and  instructs  the  permanent  committee  to  study  this 
question  and  submit  a  report  on  same  to'its  next  s  ssion. 

6.    PROPOSAL     FOR     AN     INTERNATIONAL     SERVICE      OF     STATISTICS     OF 

FERTILIZERS. 

The  permanent  committee  was  instructed  by  the  general  assembly 
in  1911  to  make  a  study  of  this  subject  on  the  motion  of  M.  Aldunate, 
delegate  of  Chile.  Accordingly  a  report  was  drawn  up  on  behalf  of 
the  permanent  comnvittee  by  M.  Pioda,  delegate  of  Switzerland,  in 
which  he  pointed  out  the  value  of  the  work  which  the  institute  could 
accomplish  by  an  inquiry  of  this  nature,  which  could  not  be  success- 


28  IFTEEISTATIONAL  INSTITUTE   OF  AGRICULTUEE   AT  EOME. 

fully  (jarried  out  by  any  single  country.  In  the  course  of  the  debate 
on  this  report  before  the  third  commission  the  wish  was  expressed  by 
several  delegates  that  a  similar  study  and  inquiry  should  be  made  on 
the  subject  of  the  production  and  trade  in  concentrated  feeds  for 
cattle.  The  followmg  resolutions  were  adopted  by  the  third  commis- 
sion and  approved  by  the  general  assembly: 

1.  The  general  assembly  instructs  the  bureau  of  agricultural  intelligence  to  publish 
in  one  of  the  spring  numbers  of  its  bulletin,  and  again  in  one  of  the  autumn  numbers 
for  each  year,  a  report  giving  all  official  and  unofficial  information  which  it  has  been 
able  to  secure  on  the  production,  consumption,  and  trade  in  agricultural  fertilizers, 
and  their  effects  in  promoting  the  progress  of  the  farming  industry. 

2.  The  bureau  of  agricultural  statistics  shall  publish  in  the  Yearbook  of  Agricul- 
tural Statistics  the  data  it  has  been  able  to  collect  during  the  year  on  official  and  other 
statistics  on  fertilizers  (production,  consumption,  and  trade  in  same). 

3.  The  permanent  committee  shall  study  what  steps  can  be  suggested  to  the  ad- 
hering Governments,  with  a  view  to  organizing,  completing  and  rendering  uniform 
the  statistics  on  production,  consumption,  and  trade  in  agricultural  fertilizers. 

7.    STATISTICS    OF   AGRICULTURAL    COOPERATION. 

In  his  report  under  this  head  the  delegate  of  Austria,  M.  de  Pozzi, 
stated  that  in  accordance  with  the  decisions  of  the  general  assem- 
bly in  1911,  the  president  of  the  institute  invited  all  the  adhering 
Governments  to  state  what  action  they  were  prepared  to  take 
toward  organizing  international  statistics  of  agricultural  cooperation. 
Fourteen  Governments  have  replied.  Austria,  Spain,  France,  Italy, 
and  Belgium  state  that  they  are  now  organizing  or  revising  their  sys- 
tems of  statistics  of  cooperation  and  will  take  into  consideration  the 
requirements  of  the  institute  in  this  matter.  Holland,  Switzerland, 
Denmark,  Germany,  Japan,  and  Great  Britain  state  that  they  are 
already  in  a  position  to  supply  the  institute  with  most  of  the  informa- 
tion it  requires.  Sweden,  Mexico,  and  the  United  States  state  that 
they  are  not  yet  in  a  position  to  give  the  mformation  asked  for. 
The  reporter  stated: 

It  is  gratifying  to  note  that  the  Governments  of  several  countries  of  great  importance 
for  the  development  of  agricultural  cooperation  have  willingly  fallen  in  with  the 
ideas  of  the  institute  for  the  organization  of  an  international  statistical  service  for 
agricultural  cooperation. 

The  following  resolutions  were  unanimously  adopted  by  the  fourth 
commission,  before  which  the  report  came  up  for  consideration,  and 
by  the  general  assembly: 

1.  The  general  assembly  notes  with  satisfaction  the  results  so  far  attained  by  the 
inquiry  made  by  the  permanent  committee  on  the  organization  of  an  international 
service  of  statistics  of  agricultural  cooperation  on  the  basis  of  the  decisions  of  the 
third  general  assembly,  in  so  far  as  these  are  not  incompatible  with  the  legislation  of 
the  several  adhering  countries. 

2.  It  instructs  the  permanent  committee  to  continue  this  inquiry  and  to  begin,  as 
soon  as  possible,  the  regular  publication  of  comparative  statistical  data  on  agricul- 
tural cooperation  in  the  several  countries. 

3.  It  instructs  the  permanent  committee  to  submit  to  the  next  session  of  the  gen- 
eral assembly  a  report  on  the  further  results  obtained  by  its  labors  in  this  field. 

8.    STATISTICS    OF    CROP    INSURANCE    AGAINST    DAMAGE    BY    HAIL. 

M.  Bolle,  delegate  of  Belgium,  submitted,  on  behalf  of  the  perma- 
nent committee,  a  detailed  report  on  this  subject.  In  accordance 
with  the  decisions  of  the  general  assembly  in  1911   the  adhering 


INTEENATIONAL  INSTITUTE   OF  AGRICULTURE   AT   ROME.  29 

countries  had  been  invited  to  reply  to  a  questionnaire  sent  out  by 
the  institute  on  the  statistics  of  hail.  Some  Governments  merely 
acknowledged  receipt  of  this  questionnaire  without  supplying  the 
information  asked  for  on  the  ground  that  hailstorms  are  not  of 
importance  in  their  countries,  while  others  returned  it  duly  filled 
in  and  forwarded  the  text  of  the  laws  enacted  in  their  countries  on 
hail  insurance.  These  replies  clearly  show  the  great  importance  of 
insurance  against  hail  and  the  utility  of  spreading,  through  the 
institute's  publications,  a  knowledge  of  the  measures  taken  in  the 
several  countries  to  develop  this  form  of  insurance. 
The  following  resolutions  were  adopted: 

1.  In  view  of  the  valuable  services  rendered  to  agriculture  by  insurance  against 
hail,  the  general  assembly  calls  on  the  adhering  Governments  whose  crops  are  threat- 
ened by  this  scourge  to  communicate  regularly  to  the  institute  the  legislative,  admin- 
istrative, or  private  measures  taken  within  their  jurisdiction  to  promote,  encourage, 
doA^elop,  and  control  insurance  against  hail. 

2.  The  general  assembly  instructs  the  permanent  committee  to  spread  a  knowledge 
of  these  measures  by  means  of  the  monthly  bulletin  of  the  bureau  of  economic  and 
social  intelligence. 

9.    STATUS    OF    THE     INSTITUTE'S    WORK    IN    PROMOTING    AN    INTERNA- 
TIONAL SERVICE  OF  AGRICULTURAL  METEOROLOGY. 

The  report  on  this  head  submitted  on  behalf  of  the  permanent 
committee  by  M.  Louis  Dop,  delegate  of  France,  gives  the  history 
of  the  steps  so  far  taken  by  the  institute  in  this  matter,  as  follows: 

The  general  assembly  in  1911  examined  a  report  on  the  need  for 
the  organization  of  an  international  service  of  agricultural  meteor- 
ology and  unanimously  decided  to  forward  the  same  officially  to  the 
international  meteorological  committee  for  action.  As  the  result 
of  this  step  the  international  meteorological  committee  met  in  Paris 
in  September,  1912,  and  again  in  Rome  in  April,  1913,  and  appointed 
in  accordance  with  the  proposal  made  by  the  institute  a  permanent 
commission  on  agricultural  meteorology,  consisting  of  M.  Angot, 
president  of  the  permanent  commission;  M.  Shaw,  president  of  the 
international  meteorological  committee;  Messrs.  Bornstein  and 
Hergesell  for  Germany,  Brounoff  for  Russia,  Palazzo  for  Italy,  Dop 
for  France,  Ryder  for  Denmark,  and  Stupart  for  Canada.  The  per- 
sonnel of  this  commission  is  to  be  completed  by  further  appoint- 
ments, each  Government  sending  to  the  president  of  the  permanent 
commission  of  meteorology  (M.  Angot)  the  names  of  the  persons  it 
wishes  to  see  placed  on  said  commission  to  represent  its  country. 
The  commission  is  to  draw  up  a  plan  for  an  international  service  of 
agricultural  meteorology. 

Thus  the  proposals  formulated  by  the  International  Institute  of 
Agriculture  at  the  general  assembly  of  1911  have  been  successfully  car- 
ried out.  The  international  meteorological  committee  has  accepted 
them  and  requested  the  cooperation  of  the  institute  in  this  work  of 
organizing  an  international  service  of  agricultural  meteorology. 

The  reporter  then  submitted  data  showing  that  the  economic  loss 
to  agriculture  due  to  meteorological  causes  amounts,  for  Europe 
alone,  to  about  $1,000,000,000  a  year.  He  stated  that  the  aim  of  an 
agricultural  meteorological  service  should  be  to  render  an  economic 
service  to  the  farmers  by  assisting  them  to  reduce  the  losses  due  to 
atmospheric  causes,  and  that  if  this  is  to  be  done  it  is  essential  that 


30  INTERNATIONAL  INSTITUTE   OF  AGRICULTURE   AT  ROME. 

the  permanent  commission  of  agricultural  meteorology  include  among 
its  members  not  only  meteorologists  but  also  botanists,  agronomists, 
phytopathologists,  and  agricultural  geologists. 

After  the  conclusions  arrived  at  m  the  report  had  been  carefully 
gone  into  by  the  third  commission,  the  following  resolutions  were 
unanimously  adopted  by  it  and  approved  by  the  general  assembly: 

1.  The  general  assembly  resolves  to  transmit  to  the  international  meteorological 
committee,  through  the  president  of  the  institute,  its  thanks  for  the  favorable  recep- 
tion given  by  the  committee  to  the  proposals  formulated  by  the  general  assembly 
in  1911  on  the  question  of  agricultural  meteorology,  and  more  especially  for  the 
appointment  of  the  permanent  commission  on  agricultural  meteorology. 

2.  M.  Dop's  report  (1913),  approved  by  the  general  assembly,  will  be  forwarded 
officially  by  the  institute  to  the  president  of  the  permanent  commission  of  agricultural 
meteorology,  so  as  to  serve  as  the  basis  for  the  labors  of  that  commission. 

3.  The  general  assembly  is  of  the  opinion  that  the  permanent  commission  on  agri- 
cultural meteorology  should  consist  of  meteorologists,  agronomists,  botanists,  phyto- 
pathologists, and  agrogeologists. 

4.  The  general  assembly  expresses  the  wish  that  the  permanent  commission  on 
agricultural  meteorology  examine  the  following  questions: 

(1)  Statistics  of  maximum  losses  caused  by  storms. 

(2)  Importance  of  daily  weather  reports  in  drawing  up  statistics  of  favorable  condi- 
tions. 

(3)  Study  of  factors  which  contribute  to  increase  crop  yield;  tendency  toward 
maximum  yield. 

(4)  Study  of  means  for  spreading  a  general  knowledge  of  meteorology  amongst 
farmers. 

(5)  Study  of  relations  between  the  yield  of  a  crop  and  the  several  atmospheric 
factors. 

(6)  The  standardizing  of  a  good  agricultural  year  from  the  atmospheric  standpoint. 

(7)  The  drawing  up  of  a  scheme  of  annotation  or  a  percentage  scale  indicating  a 
good  year  or  an  average  year. 

(8)  Study  of  the  factors  which  go  to  make  a  good  year. 

(9)  Study  of  the  several  factors  which  contribute  to  the  production  of  a  good  crop: 
(a)  Time  required  to  insure  a  good  crop;  (b)  hours  of  sunshine  required  for  a  good  crop; 
(c)  amount  of  heat  required  for  a  good  crop;  (d)  amount  of  moisture  required  for  a 
good  crop;  (e)  rainfall  required  for  a  good  crop. 

(10)  The  preparation  of  questionnaires  to  be  sent  to  farmers. 

10.    PROPOSAL  FOR  AN    INTERNATIONAL  AGREEMENT   FOR  THE  CONTROL 

OF    PLANT   DISEASES. 

The  report  on  this  head  was  submitted  on  behalf  of  the  permanent 
committee  by  Prof.  Cuboni,  delegate  of  Ethiopia.  The  report  sets 
forth  the  action  already  taken  by  the  institute  to  promote  interna- 
tional action  for  the  control  of  plant  diseases.  In  1909  the  general 
assembly  instructed  the  institute  to  publish  a  monograph  showing 
the  present  status  of  the  service  for  the  control  of  plant  diseases  in 
each  of  the  adhering  countries,  and  to  take  active  steps  to  induce 
those  countries  which  had  not  such  a  service  to  organize  it.  This 
preliminary  work  was  accomplished  by  the  institute,  which  submitted 
to  the  general  assembly  in  1911  a  monograph  of  233  pages  entitled 
"Present  Organization  of  the  Services  for  the  Control  of  Plant  Dis- 
eases and  Insect  Pests  in  the  Different  Countries,"  when  a  resolution 
was  approved,  as  follows: 

The  general  assembly  instructs  the  permanent  committee  of  the  International 
Institute  of  Agriculture  to  draw  up  a  report  calling  the  attention  of  the  Governments 
to  the  need  of  assembling  an  international  commission  of  plant  pathology. 

Accordingly  the  institute  drew  up  such  a  report,  setting  forth  not 
only  the  technical  but  also  the  economic  importance  of  convening  an 
international  commission  of  plant  pathology  to  draft  measures  to  be 


INTEENATIONAL  INSTITUTE   OP  AGRICULTURE   AT   ROME.  31 

taken  for  the  control  of  plant  diseases  which  might  serve  as  a  basis  on 
which  the  institute  could  draw  up  proposals  to  be  submitted  to  the 
several  Governments  for  an  international  agreement  in  this  field. 
The  French  Government  then  undertook  to  formally  invite  the 
Governments  to  send  delegates  to  such  a  conference  which  was  to  have 
been  held  in  Rome  in  April,  1913,  so  that  its  conclusions  might  have 
been  submitted  for  action  to  the  general  assembly  of  the  institute. 
The  inadequate  notice  given,  however,  made  it  necessary  to  postpone 
the  meeting  of  the  mternational  commission  until  a  later  date,  and  in 
the  absence  of  its  proposals  the  permanent  committee  submitted  the 
following  resolutions  for  the  general  assembly  to  act  on: 

The  general  assembly  recommends  that  the  Governments  adhering  to  the  institute: 

(1)  Organize,  if  they  have  not  ah-eady  done  so,  a  Government  service  of  phyto- 
pathological  inspection  and  control,  especially  for  nurseries  and  establishments 
trading  in  living  plants  intended  for  reproduction. 

(2)  Enact  that  all  consignments  of  plants  intended  for  reproduction  be  accompanied 
by  a  certificate  similar  to  that  required  by  the  Berne  phyloxera  convention,  to  be 
delivered  by  the  Government  inspector,  certifying  that  said  plant  comes  from  a  nursery 
subject  to  his  control  and  free  from  dangerous  cryptogamic  or  entomological  disease. 

(3)  In  case  one  or  more  States  disagree  as  to  whether  a  given  disease  should  be 
described  as  dangerous,  or  when  there  is  grave  reason  to  suspect  the  presence  of  new 
and  dangerous  disease  liable  to  be  spread  by  plants  not  intended  for  reproduction,  the 
Governments  concerned  should  convene  a  commission  of  specialists  of  their  respective 
countries  to  study  and  propose  the  most  practical  mode  of  preventing  the  spread  of 
the  disease  with  the  smallest  possible  loss  to  the  trade  of  the  countries  concerned. 

(4)  The  assembly  considers  that  an  international  agreement  is  indispensable  for 
the  protection  of  agriculture  against  plant  diseases.  Such  an  agreement  should  be 
based  on  the  principles  outlined  in  paragraphs  1  to  3  of  these  resolutions  and  should 
set  forth:  (a)  The  measures  and  methods  of  inspection  and  control;  (b)  a  list  of  dis- 
eases recognized  as  dangerous;  (c)  what  products  should  be  subject  to  control;  (d)  the 
blanks  and  form  of  certificate;  (e)  the  mode  of  arbitration  to  be  resorted  to  in  disputed 
cases. 

(5)  The  assembly  considers  that  the  convening  of  an  international  commission  of 
specialists,  as  proposed  by  the  French  Government,  would  greatly  facilitate  by  its 
preparatory  labors  the  conclusion  of  an  agreement  by  plenipotentiaries. 

The  assembly  expresses  the  wish  that  said  commission  convene  as  soon  as  possible, 
and  that  this  may  be  followed  at  once  by  the  conclusion  of  an  agreement. 

(6)  The  assembly  is  of  opinion  that  whenever  the  General  Assembly  of  the  Inter- 
national Institute  of  Agriculture  convenes.  Government  specialists  on  plant  pathology 
should  meet  in  a  special  commission  to  (a)  come  to  an  understanding  on  common 
studies  bearing  on  plant  diseases;  (6)  to  keep  in  touch  with  the  results  obtained  by 
the  enforcement  of  the  international  agreement,  to  communicate  these  results  to  one 
another,  and  to  suggest,  if  need  be,  amendments  to  be  introduced  therein. 

These  proposals  were  the  subject  of  an  animated  debate  in  the  third 
commission,  which  concluded  that  the  question  had  not  yet  been 
sufficiently  studied  to  authorize  the  assembly  to  lay  down  the  basis 
for  an  international  agreement  between  the  several  Governments, 
and  deemed  it  desirable  that  an  international  commission  of  Govern- 
ment experts  should  be  convened  to  study  the  question  thoroughly. 
This  commission  should  include,  besides  plant  pathologists,  practical 
men  capable  of  appreciating  the  economic  and  political  bearing  of 
any  measures  to  be  proposed.  Careful  preliminary  study  of  the 
questions  to  be  brought  before  said  commission  should  be  made  in 
each  country,  the  International  Institute  of  Agriculture  placing  the 
requisite  material  for  such  study  at  the  service  of  the  several  Govern- 
ments. This  international  commission  should  convene  at  a  date  not 
later  than  May,  1914.  The  third  commission  also  expressed  itself 
strongly  in  favor  of  a  meeting  of  phytopathologists  from  the  several 
countries  being  held  on  the  occasion  of  each  session  of  the  general 


32  INTERNATIONAL  INSTITUTE    OF  AGRICULTURE  AT   ROME. 

assembly,  as  in  tlae  present  formative  stage  of  this  science  its  success 
largely  depends  on  careful  study  of  the  several  problems  along  paral- 
lel lines  in  the  different  countries  and  on  the  frequent  exchange  of 
views  between  the  specialists  engaged  in  these  studies. 

The  following  resolutions  were  drawn  up  by  the  third  commission 
and  unanimously  adopted  by  the  general  assembly  at  its  plenary 
meeting: 

1.  The  general  assembly  recommends  that  the  Governments  adhering  to  the  insti- 
tute organize,  if  they  have  not  aheady,  a  Government  service  of  phytopathology. 

2.  The  general  assembly,  recognizing  the  need  for  an  international  agreement 
on  the  means  of  controlling  plant  diseases,  deems  it  essential  that  an  international 
commission  of  experts  be  convened  and  expresses  the  wish  that  the  French  Govern- 
ment continue  the  initiative  it  took  in  this  matter  by  bringing  about  the  holding  of 
such  an  international  commission  as  soon  as  possible  and  not  later  than  May,  1914. 

3.  The  general  assembly  is  of  opinion  that  on  the  occasion  of  each  session  of  the 
general  assembly  of  the  International  Institute  of  Agriculture  experts  of  the  adhering 
Governments  should  meet  in  a  special  commission  to  come  to  a  mutual  understanding 
on  their  common  researches  and  studies  on  plant  diseases. 

4.  The  general  assembly  calls  on  the  adhering  Governments  to  initiate  the  study 
of  the  several  questions  to  be  brought  before  the  international  commission  of  phyto- 
pothology  on  the  basis  of  data  to  be  supplied  by  the  International  Institute  of 
Agriculture. 

The  third  commission  also  considered  a  paper  submitted  by  the 
director  of  the  Imperial  Experiment  Station  of  St.  Petersburg,  on 
the  adulteration  of  seed,  in  which  the  director  says: 

The  work  of  the  seed-testing  stations  in  the  several  countries  is  to  a  great  extent 
nullified  by  the  fact  that  they  do  not  work  on  uniform  lines,  and  that  new  cases  of 
seed  adulteration  remain  for  a  long  time  unknown,  so  that  stations  can  not  take  the 
requisite  measures  for  the  protection  of  agriculture. 

In  consideration  of  this  report  the  general  assembly  approved  the 
following  resolution: 

The  general  assembly,  having  taken  note  of  the  communication  by  M.  Jaczewski, 
on  the  subject  of  the  publication  of  the  results  of  seed  and  grain  tests,  and  recog- 
nizing the  practical  importance  of  rapid  and  widespread  information  on  this  subject, 
instructs  the  permanent  committee  to  study  the  question  of  inserting  in  the  insti- 
tute's monthly  bulletin  data  on  the  adulteration  of  grain  and  seeds,  which  data  should 
be  supplied  by  the  Government  seed-testing  stations.  The  general  assembly  con- 
siders that  the  permanent  committee  should  advise  the  Governments  adhering  to 
the  institute  to  require  the  seed-testing  stations  to  forward  such  data  to  the  institute. 

10.  PROTECTION  OF  USEFUL  BIRDS. 

The  permanent  committee  again  submitted,  as  in  former  years,  a 
report  to  the  general  assembly  showing  the  steps  taken  by  the  adhering 
Governments  since  the  session  in  1911  for  the  protection  of  useful 
birds.  The  reporter,  M.  de  Miklos,  delegate  of  Hungary,  was  able  to 
state  that  the  propaganda  carried  on  by  the  institute  in  this  field  had 
borne  good  fruit  as  five  more  countries  had  enacted  legislation  on  the 
matter  since  1911.  The  following  resolution  was  submitted  and 
unanimously  adopted  by  the  general  assembly: 

1.  The  general  assembly  notes  with  satisfaction  that  several  Governments  have 
recognized  during  the  past  two  years  the  need  of  taking  r  asures  for  the  protection  of 
vsefi.l  birds,  this  proving  the  efhcacy  of  the  action  of  the  International  Institute  of 
Agriculti  le  in  this  field. 

2.  In  view  of  tly?  fact  that  strenuous  efforts  mrst  still  be  made  to  bring  about,  in 
accordance  with  the  wish  of  the  general  assembly  in  1911,  universal  cooperation 
between  the  several  countries  for  the  protection  of  useful  birds,  the  general  assembly 


INTERNATIONAL   INSTITUTE    OP   AGRICULTURE   AT   ROME.  33 

instructs  the  permanent  committee  to  continue  its  work  of  propaganda  with  the 
adhering  Governments  and  to  present  a  report  to  the  next  session  of  the  assembly  on 
this  question. 

11.    DRY   FARMING. 

Following  Up  the  action  taken  by  the  institute  on  this  head  in  1911, 
the  permanent  committee  submitted  a  detailed  report  by  M.  de 
Miklos,  delegate  of  Hungary,  showing  that,  as  requested  by  the  insti- 
tute, experiments  in  dry  farming  are  being  carried  out  under  Govern- 
ment control  in  arid  regions  in  several  countries.  The  following 
resolution  was  adopted  by  the  third  commission  and  approved  by  the 
general  assembly: 

The  general  assembly,  noting  the  extension  of  dry  farming  in  several  countries,  and 
the  results  obtained  by  these  methods,  as  shown  by  the  proceedings  of  the  Seventh 
Dry  Farming  Congress" held  in  1912  at  Lethbridge  (Canada),  instructs  the  permanent 
committee  to  continue  its  work  of  documentation  on  this  question,  and  again  invites 
the  Governments  to  communicate  to  the  institute  the  results  of  the  experiments  made 
in  this  branch  of  farming. 

Finally,  the  delegate  of  Austria,  Chev.  de  Pozzi,  on  behalf  of  the 
Austrian  delegation,  called  the  attention  of  the  assembly  to  the 
importance  of  institutions  for  farm  bookkeeping,  as  systematic 
studies  on  these  lines  afford  a  much  more  accurate  idea  of  the  real 
status  of  agriculture  in  a  country  than  can  be  otherwise  obtained. 
On  his  motion  the  following  resolution  was  adopted  by  the  general 
assembly : 

The  general  assembly  instructs  the  permanent  committee  to  draw  up  for  the  next 
general  assembly  a  report  on  the  institutions  existing  in  some  countries  for  farm 
bookkeeping,  with  a  view  to  extending  these  institutions  to  as  many  countries  as 
possible  in  order  that  the  institute  may,  in  time,  be  able  to  utilize  the  data  secured 
by  such  institutions  for  its  statistical  and  economic  studies. 

The  first  commission  was  called  upon  to  fix  the  date  for  the  next 
session  of  the  general  assembly  in  accordance  with  article  4  of  the 
treaty.  A  proposal  to  hold  the  next  session  in  1916  was  made,  but 
the  general  concensus  of  opinion  in  the  commission  was  that  the 
Governments  require  to  keep  in  close  touch  with  the  work  of  the 
institute,  and  that  the  interval  between  the  sessions  of  the  assembly 
should  not  exceed  two  years. 

It  was  therefore  decided  by  28  votes  against  4  that  the  next  session 
shall  be  held  in  May,  1915.  This  date  was  unanimously  approved 
by  the  assembly  at  its  plenary  meeting  when  the  following  re;  olu- 
tions  brought  in  by  the  first  commission,  were  passed: 

1.  The  general  assembly,  having  taken  cognizance  of  the  administrative  report 
submitted  by  the  president  of  the  International  Institute  of  Agriculture  signifies  its 
approval  of  the  same,  and  addresses  its  congratulations  and  thanks  to  the  president, 
the  members  of  the  permanent  committee,  and  the  staff  of  the  institute. 

2.  The  general  assembly,  renewing  the  wish  expressed  in  1911,  requests  the  per- 
manent committee  to  place  in  the  hands  of  the  Governments  of  the  adhering  States 
the  reports  on  questions  to  come  before  the  assembly  at  least  two  months  before  it  con- 
venes. It  also  expresses  the  wish  that  the  several  Government  bureaus  fa,cflitate  the 
work  of  the  institute  by  always  forwarding,  at  the  earliest  moment  possible,  the 
information  which  they  may  be  asked  to  supply. 

3.  The  general  assembly  instructs  the  permanent  committee  to  study  the  question 
of  preparing  a  dictionary  of  agricultural  terms. 

4.  The  next  session  of  the  general  assembly  will  be  held  in  May,  1915. 

5.  The  general  assembly  calls  on  the  Governments  of  the  adhering  States  to  increase 
then-  annual  quota  of  subscription  to  the  institute  to  the  maxim/im  provided  for  under 
article  10  of  the  treaty  of  June  7,  1905,  the  increased  contribution  to  begin  in  1914. 

S.  Doc.  196,  63-1 3 


34  INTERNATIONAL  INSTITUTE   OF  AGRICULTUEE  AT  EOME. 

It  approves  the  statement  of  receipts  and  expenditures  for  the  years  1911-12  and 
takes  cognizance  of  the  budget  for  1913  approved  by  the  permanent  committee.  It 
votes  a  lump  sum  of  1,106,485  lire  for  the  expenses  of  the  institute  in  1914,  and  votes 
for  the  expenses  of  1915  any  surplus  which  may  be  over  from  1914  and  all  the  receipts 
of  the  institute  during  that  year. 

6.  Mindful  of  the  august  initiative  to  which  the  existence  of  the  International  Insti- 
tute of  Agriculture  is  due,  the  general  assembly  requests  the  president  of  the  institute 
to  forward  to  His  Majesty  the  King  of  Italy  the  expression  of  its  respectful  homage 
and  profound  gratitude. 

The  session  of  the  general  assembly  closed  on  Monday,  May  12, 
1913,  in  the  presence  of  the  members  of  the  American  commission 
for  the  investigation  of  the  European  systems  of  rural  cooperative 
finance,  then  in  Rome. 


i 


ANNUAL  REPOET  FOR  1912-13  OF  THE  PERMANENT  DELEGATE 
OF  THE  UNITED  STATES. 

International  Institute  of  Agriculture, 

Rome,  Italy,  August  28,  1913. 
Hon.  William  J.  Bryan, 

Secretary  oj  State,  Washington,  D.  0. 

Sir:  I  have  the  honor  to  hand  you  herewith,  in  triplicate,  my 
report  on  the  work  of  the  International  Institute  of  Agriculture  for 
the  year  1912-13;  also  copy  of  letters  to  the  Secretary  of  Agriculture 
and  the  Secretary  of  Commerce,  and  three  copies  of  Senate  Document 
No.  123. 

As  part  of  the  ground  to  be  gone  over  is  covered  by  the  report  of 
your  delegation  to  the  general  assembly  (May,  1913)  I  will  confine 
my  remarks  mainly  to  commenting  on  matters  touched  upon  therein. 
I  am  sending  a  copy  of  this  report  to  Dr.  Alfred  C.  True,  chairman 
of  that  delegation,  so  as  to  constitute  it  an  addenda  to  the  general 
assembly  report. 

My  report  deals  with  the  following  subjects: 

1.  The  crop-reporting  service  of  the  institute. 

2.  The  treaty  of  1905  and  the  United  States  quota;  expansion  of  the  institute's 
services. 

3.  The  Commercial  Bulletin  and  the  factors  in  price  formation. 

4.  Reports  on  cotton  stocks  on  hand. 

5.  Cooperative  rural  credit. 

6.  The  institute's  publications,  how  they  should  be  distributed. 

1.    THE    CROP-REPORTING    SERVICE    OF    THE    INSTITUTE. 

The  importance  of  official  and  authoritative  international  crop- 
reporting  is  now  generally  recognized.  One  by  one  the  nations  are 
reorganizing  and  unifying  their  systems  in  conformity  with  the  wishes 
of  the  institute.  The  last  important  nation  to  do  this  was  Russia. 
In  an  official  communication  (October,  1912)  the  Russian  Government 
made  the  foUowing  announcement  to  the  institute: 

The  Imperial  Government  of  Russia,  deeming  it  its  duty  to  contribute  to  the  efforts 
made  by  the  International  Institute  of  Agriculture  to  secure  greater  uniformity  in 
agricultural  statistics  *  *  *  has  decided  to  take  all  possible  steps  to  supply  the 
institute  regularly  and  at  the  earliest  possible  date  with  all  information  on  the  condi- 
tion of  the  crops  and  estimates  of  probable  yield.  *  *  *  The  Russian  Govern- 
ment *  *  *  will  take  the  necessary  steps  to  communicate  to  the  institute,  about 
June  15  and  July  15  of  each  year,  the  numerical  reports  on  the  condition  of  the  crops 
and  the  probable  yield. 

As  a  result  of  this  decision  the  Russian  Government  is  now  regu- 
larly sending  its  data  to  the  institute. 

The  monthly  crop  reports  of  the  institute  now  exercise  a  decisive 
influence  on  price  formation  for  the  staples  of  agriculture,  as  evidenced 
by  the  serious  consideration  given  them  by  the  press  of  the  world. 

85 


86  INTEE NATIONAL   INSTITUTE    OF   AGRICULTUEE   AT    ROME. 

Speaking  of  this  branch  of  the  institute's  work,  Document  No.  720 
of  the  German  Reichstag,  Thirteenth  Legislature,  first  session, 
1912-13,  says: 

The  main  purpose  of  the  institute  is  to  promote  the  equitable  formation  of  prices  for 
the  staples  of  agriculture.  This  only  can  be  done  by  securing  authentic  and  authori- 
tative information  on  the  production  and  trade  in  the  staples,  so  as  to  use  it  as  a  means 
of  neutralizing  false  or  inadequate  or  biased  information  circulated  in  market  centers. 
The  institute,  by  securing  and  compiling  this  information,  is  solving  one  of  the  most 
important  and  most  difficult  of  economic  problems. 

2.   TREATY  OF   1905  AND  THE    UNITED   STATES'    QUOTA — EXPANSION  OF 
THE    institute's    SERVICES. 

From  time  to  time  adhering  nations  requested  the  institute  to 
extend  its  reports  to  certain  further  products;  for  instance,  CaHfornia, 
through  the  Department  of  Agriculture,  requested  that  fruits  and  nuts 
be  reported  on;  Germany  and  Russia  asked  for  oleaginous  seeds; 
Austria,  Germany,  and  Argentma  that  live  stock  and  meat  be  added ; 
Chile  and  Switzerland  that  reports  be  made  on  the  production  and 
consumption  of  commercial  fertilizers. 

To  meet  the  need  for  the  extension  of  the  service  the  general 
assembly,  at  its  May  session  (1913),  decided  that  the  Governments 
be  asked  to  raise  their  quota  of  contribution  to  the  institute  to  the 
amount  stipulated  in  the  treaty  of  June,  1905,  the  sixth  and  seventh 
lines  of  article  10  of  which  read: 

As  a  temporary  provision  the  assessment  for  the  first  two  years  shall  not  exceed 
1,500  francs  per  unit. 

After  which  period  of  two  years  the  quota  was  to  be  2,500  francs 
per  unit.  The  institute  began  its  service  in  1908,  therefore  this 
mcreased  contribution  was  subject  to  call  in  1910.  At  the  start, 
however,  the  services  involved  a  lesser  expenditure  than  the  income; 
indeed,  it  was  possible  during  the  first  two  years  to  accumulate  a 
reserve,  which  has  since  been  applied  to  meet  the  cost  of  the  gradu- 
ally increasing  service.  Now,  that  the  additional  work  referred  to 
above,  is  being  undertaken  at  the  request  of  the  nations,  and  to  meet 
the  increased  cost  entailed  by  the  normal  expansion  of  its  present 
services,  the  institute  has  decided  to  call  in  the  full  amount  due  under 
the  treaty  referred  to  above,  which  should  be  budgeted  for  by  tiie 
adhering  Governments  in  their  estimates  for  1914.  The  quota  of 
the  United  States  at  the  preliminary  rate  of  1,500  francs  a  unit 
amounted  to  $4,800;  at  the  rate  of  2,500  francs  a  unit  provided  for  by 
the  treaty,  it  will  now  amount  to  $8,000. 

3,    THE      COMMERCIAL     BULLETIN     AND     THE     FACTORS     IN     FRICE 

FORMATION. 

The  institute  is  now  supplementing  its  crop-reportmg  service  by 
the  publication  of  its  Commercial  Bulletin,  giving,  for  the  staples  of 
agriculture,  statistics  of  imports,  exports,  and  stocks  and  the  ruling 
prices  on  the  world's  market  centers. 

The  publication  of  the  ruling  prices  was  deemed  important  as  a 
means  of  indicating  the  comparable  relation  and  bearing  between  the 
prices  at  the  world's  exporting  and  purchasing  centers  and  the  local 
prices. 


INTERNATIONAL  INSTITUTE   OF  AGRICULTURE   AT   ROME.  37 

In  outlining  the  program  for  this  work  there  was  some  considerable 
discussion  as  to  the  mode  of  presenting  these  prices.  It  was  shown 
that  the  mere  statement  of  the  ruling  prices  was  insufhcient.  For 
instance,  in  the  institute's  Commercial  Bulletm  of  November  22,  1912, 
the  prices  for  wheat  were  given  as  follows:  Antwerp,  20.42;  Paris, 
27.70;  Liverpool,  20.27;  Budapest,  25.20;  Winnipeg,  15.04;  Chicago, 
16.09;  Minneapolis,  15.26;  and  Buenos  Aires,  17.05. 

Clearly  this  information  would  be  of  little  use  to  the  farmer;  to  be 
of  value  the  principal  factors  shaping  the  price  on  the  market  centers 
should  be  given.  These  are  (1)  the  price  paid  to  the  farmer,  (2) 
custom's  duty,  (3)  brokerage,  (4)  insmance,  and  (5)  cost  of  transpor- 
tation. These  factors  when  summed  up  for  any  given  market  should 
give  a  total  equal  to  the  ruling  price  at  the  world's  purchasing  center. 
By  supplying  this  information  along  with  the  ruling  prices  in  the 
world's  market  centers  the  institute  would  enable  producers  and  con- 
sumers anywhere  to  judge  of  the  ec[uity  in  the  relation  between  the 
ruling  world's  price  and  the  price  in  a  given  locality.  They  would 
thus  be  enabled  to  detect  any  cause  operating  adversely  on  the  forma- 
tion of  prices.  In  other  words,  the  general  public  would  be  given 
that  kind  of  information  which  is  now  usually  at  the  command  of 
large  buyers.  The  general  diffusion  of  information  of  this  character 
would  meet  the  standard  demanded  by  President  Wilson  in  his  book 
The  New  Freedom,  in  which  he  points  out  the  need  for  throwing  the 
light  of  publicity  on  economic  matters  which  concern  the  people. 

Let  me  illustrate  the  importance  of  this  information  by  taKing  up 
one  of  the  factors,  the  cost  of  transportation.  There  are,  perhaps, 
not  many  producers  who  realize  the  fact  that  an  increase  in  the  cost 
of  ocean  carriage  for  a  staple  means  a  decrease  not  only  in  the  price 
for  the  quantity  exported  but  likewise  a  decrease  in  the  home  price 
for  the  entire  production,  for  as  the  price  of  the  staples  is  quoted  in 
the  bourses  and  exchanges  the  home  price  and  the  export  price  are  the 
same.  Now,  say  the  production  of  wheat  is  600,000,000  bushels,  of 
which  200,000,000  are  exported.  A  1-cent  rise  in  the  cost  of  ocean 
carriage  would  therefore  mean  a  loss  to  the  producers  of  1  cent  on 
600,000,000  bushels,  or  $6,000,000.  A  1-cent  decrease  in  the  cost  of 
ocean  carriage  would  mean  an  increase  in  the  home  price  of  1  cent 
a  bushel  on  the  600,000,000  bushels,  or  an  increase  of  $6,000,000. 

The  importance  of  a  general  and  widespread  knowledge  of  the  cost 
of  ocean  carriage  thus  becomes  ob^dous.  I  therefore  offered  a  pro- 
posal in  the  permanent  committee  that  the  institute  publish  this 
information  in  its  Commercial  Bulletin.  (See  addenda  to  the  gen- 
eral assembly  report.)  This  proposal  was  at  first  rejected  on  the 
ground  that  the  data  desired  would  have  to  be  obtained  from  unoffi- 
cial sources.  Subsequently,  however,  it  was  pointed  out  that  the 
Governments  could  obtain  this  data  from  the  unofficial  sources  and 
render  it  official  by  handing  it  to  the  institute.  The  permanent  com- 
mittee then  decided  that  as  an  initial  step  toward  this  end  its  statis- 
tical bureau  should  take  the  matter  up  in  a  preliminary  way  for 
study  and  present  its  findings  to  the  institute.  I  would  respectfully 
suggest  that  the  United  States  Government  give  the  institute  all 
assistance  possible  toward  placing  this  service  on  a  working  basis. 
Please  see  inclosed  copy  of  a  letter  on  this  subject  addressed  to  the 
Secretary  of  Commerce. 


38  INTERNATIONAL   INSTITUTE   OF   AGRICULTURE   AT   ROME. 

4.   REPORTS   ON   COTTON    STOCKS   ON   HAND. 

The  question  of  the  world's  data  on  cotton  stocks  as  a  powerful 
factor  in  determining  the  price  of  cotton  is  another  matter  which  I 
believe  will  merit  your  attention. 

Quite  a  number  of  the  delegates  to  the  American  Commission  on 
Rural  Credits  which  visited  Europe  this  summer  were  from  the 
southern  States.  They  started  their  investigations  from  the  insti- 
tute in  Rome,  and  expressed  the  opinion  that  the  institute  could  be 
of  material  service  to  the  cotton  interests  if  it  were  to  publish,  in 
addition  to  the  official  data  on  the  production  of  cotton  now  given  in 
its  crop-reporting  bulletin,  reports  on  cotton  stocks  on  hand.  Later 
on  representatives  of  the  cotton  States,  prominent  amongst  whom 
Harvie  Jordan,  of  Atlanta,  Ga.,  and  Clarence  Ousley  and  Col.  Wil- 
liams, of  Texas,  investigated  the  conditions  of  the  cotton  market  in 
Egy;pt  and  were  confirmed  in  their  views  as  to  the  vital  importance  of 
obtaming  these  data  on  stocks  on  hand.  In  June  they  attended  the 
cotton  coi.gress  held  at  The  Hague,  and  submitted  the  idea  that  the 
institute  should  be  urged  to  supply  all  concerned  with  official  data  on 
this  head.  This  proposal  seemed  to  be  favorably  regarded  by  the 
other  members  of  the  congress,  and  it  was  decided  that  it  should  be 
brought  for  action  before  the  International  Cotton  Federation  at  its 
next  annual  meeting. 

If  the  institute  is  to  do  this  work,  it  must,  of  course,  obtain  the 
required  data  from  the  Governments  so  as  to  render  the  information 
official,  and  I  should  be  informed  whether  you  can  arrange  to  have 
the  Department  of  Agriculture  or  the  Department  of  Commerce 
secure  the  data  for  the  United  States  and  transmit  the  same  officially 
to  the  institute.  Meantime  I  purpose  taking  the  matter  up  with  the 
British  authorities,  and  shall  address  Sir  Charles  Macara,  president  of 
the  International  Cotton  Federation,  on  the  subject. 

5.    COOPERATIVE    RURAL    CREDIT. 

A  notable  feature  of  the  work  during  the  past  year  has  been  the 
active  and  powerful  cooperation  of  the  institute  in  the  preparations 
for  the  investigation  undertaken  by  the  United  States  and  American 
commission  into  the  European  systems  of  rural  cooperative  credit. 
The  permanent  committee  delegates  for  the  countries  visited  by  the 
commission  personally  took  up  with  their  Governments  the  arrange- 
ments which  were  so  effectively  and  impressively  carried  out  for 
facilitating  the  inquiry.  The  delegates  of  Italy,  Hungary,  France, 
and  Great  Britain  personally  accompanied  and  assisted  the  com- 
mission in  their  respective  countries.  On  this  subject  of  rural 
credit  I  would  respectfully  call  your  attention  to  the  inclosed  copy  of 
a  letter  to  the  Secretary  of  Agriculture. 

6.    THE    institute's    PUBLICATIONS,    HOW    THEY    SHOULD    BE    DIS- 
TRIBUTED. 

The  equitable  distribution  of  the  institute's  publications  to  which 
the  United  States  is  entitled  has  been  a  perplexing  problem.  I  am 
sending  you  under  separate  cover  a  copy  of  the  present  mailing  list, 
showing  where  and  to  whom  these  publications  are  now  sent.     (A 


INTERNATIONAL  INSTITUTE   OF  AGRICULTURE  AT   ROME.  39 

subsidiary  list  is  in  preparation  by  the  institute.)  This  list  is  the 
best  that  I  could  devise  from  the  limited  information  at  this  end,  but 
I  feel  sure  that  it  ought  to  be  improved  upon. 

With  this  end  in  view  I  would  suggest: 

First.  That  this  list  be  returned  me  revised  by  the  Department  of 
Agriculture  and  the  Department  of  Commerce;  or 

Second.  That  the  institute's  pubhcations  be  transmitted  to  these 
departments  in  bulk,  when  they  could  be  distributed  from  Washing- 
ton. 

Third.  A  saving  could  no  doubt  be  effected  in  the  cost  of  trans- 
mission if  the  packages  were  forwarded  through  the  Smithsonian 
exchange,  provided,  however,  that  arrangements  were  made  whereby 
transit  could  be  as  rapid  as  by  ordinary  postage;  or. 

Fourth.  Under  your  instructions  the  institute's  publications  could 
be  sent  under  frank  through  the  embassy's  mail  bags.  Please  take 
note  that  any  saving  effected  in  the  cost  of  postage  at  the  institute  end 
would  entitle  the  American  people  to  a  compensating  increase  in  the 
number  of  pubhcations  for  free  distribution. 

The  publications  consist  of  the  following: 

1.  The  Bulletin  of  Agricultural  Statistics  and  the  Commercial 
Bulletin  (25  to  30  pages).  These  ought  to  go  to  farmers,  chambers 
of  commerce,  boards  of  trade,  and  some  Members  of  Congress. 

2.  The  Bulletin  of  Economic  and  Social  Intelhgence  (150  to  200 
pages)  dealing  with  cooperation,  agricultural  credit,  and  insurance. 
These  should  go  to  the  State  and  Pomona  granges,  farmers'  insti- 
tutes, and  other  leading  agricultural  associations,  important  col- 
leges, universities,  and  libraries,  some  Members  of  Congress,  and 
State  legislatures. 

3.  The  Bulletin  of  Agricultural  Intelligence  and  Plant  Diseases 
(150  to  200  pages).  These  should  go  to  agricultural  colleges,  hbraries, 
experiment  stations,  and  farmers'  organizations. 

4.  The  Weekly  Bibliographical  Bulletin  (10  to  20  pages),  touching 
all  current  publications  on  agriculture.  These  should  go  to  colleges 
and  Hbraries. 

5.  The  Yearbook  of  International  Agricultural  Legislation  (1,000 
pages) ,  giving  in  f  uU  or  in  abstract  aU  the  important  legislative  meas- 
ures affecting  agriculture  enacted  in  the  world  during  the  year. 
These  shouid  go  to  the  leading  Members  of  Congress  and  to  the  more 
important  Hbraries. 

6.  The  International  Yearbook  of  Agricultural  Statistics  (350  to 
500  pages) ;  this  is  an  inventory  and  balance  sheet  of  the  agricultural 
resources  of  the  world,  giving  for  all  the  countries,  in  a  series  of  com- 
parable tables,  the  data  on  the  world's  area  and  production  of  the 
crops  and  on  the  available  supply  of  Hve  stock.  The  issue  now  under 
preparation  will  also  give,  besides  the  above,  the  statistics  of  inter- 
national trade  in  the  staples.  These  should  go  to  the  leading  farmers' 
associations,  the  chambers  of  commerce,  Congressmen,  universities, 
and  leading  Hbraries. 

In  addition  to  the  above  the  institute  pubhshes  from  time  to  time 
monographs  on  important  subjects  directly  and  indirectly  affecting 
agriculture. 

As  illustrating  the  difficulties  met  with  in  guiding  distribution  from 
this  end,  I  will  cite  the  case  of  the  Yearbook  of  International  Agri- 
cultural Legislation.     This  is  recognized  by  the  highest  competent 


40  INTERNATIONAL  INSTITUTE   OF   AGRICULTURE   AT   ROME. 

authorities  as  a  very  valuable  production,  especially  for  legislative 
bodies,  Government  departments,  and  national  publicists.  As  it  is 
a  costly  publication  the  United  States  was  only  entitled  to  100 
copies.  In  the  endeavor  to  circulate  them  with  great  care  I  sent  to 
the  United  States,  up  to  date,  about  10  copies,  holding  the  remain- 
der to  be  distributed  in  the  most  effective  quarters.  They  are  still 
on  hand,  in  the  institute,  and  I  am  at  a  loss  to  know  just  where  they 
should  go. 

As  an  example  of  the  valuable  service  which  is  being  rendered  by 
the  institute's  publications  I  need  only  point  to  the  fact  that  the  cir- 
culation in  the  United  States  of  the  Bulletin  on  Economic  and  Social 
Intelligence,  dealing  with  the  cooperative  credit  systems,  has  had, 
as  you  may  know,  the  effect  of  arousing  nation-wide  interest  in  this 
question.  In  addition  to  the  institute's  regular  publications  of  the 
subject  there  were  sent  out  from  the  American  room  in  the  institute 
over  150,000  supplementary  pieces  of  literature,  consisting  of  mono- 
graphs, outlines,  pamphlets,  etc.,  mainly  addressed  to  farmers,  and 
sent  to  every  section  of  the  United  States.  By  order  of  the  Senate 
and  House  of  Representatives,  quite  a  number  of  these  publications 
were  reprinted  as  public  documents  and  circulated  widely  by  the 
Southern  Commercial  Congress  among  the  American  farmers. 

All  of  this  resulted  in  the  action  taken  by  the  United  States  Gov- 
ernment and  by  the  American  commission  in  investigating  abroad 
the  European  systems  of  cooperative  rural  credit,  and  has  led  to  the 
present  broad  and  general  discussion  and  widespread  interest  in 
this  c^uestion.  The  subsequent  results  that  may  be  looked  for  from 
all  this  will  therefore  be  attributable  to  the  initial,  pioneering  work 
done  in  America  by  the  institute's  publications. 

From  all  the  foregoing  I  would  most  earnestly  urge  that  the  mat- 
ter of  the  distribution  of  the  institute's  publications  be  taken  in 
hand  and  done  under  the  auspices  of  the  American  Government  De- 
partments. I  am  anxiously  awaiting  your  instructions  relating  to 
this  matter. 

I  have  the  honor  to  remain,  sir, 
Your  obedient  servant, 

David  Lubin, 
Delegate  of  the  United  States, 
International  Institute  of  Agriculture,  Rome,  Italy. 


August  27,  1913. 
Hon.  David  Houston, 

Secretary  of  Agriculture,  Washington,  D.  0. 

Dear  Mr.  Secretary:  As  I  deem  the  matter  at  issue  of  sufficient 
importance  I  will  quote  from  a  letter  of  Senator  Fletcher's  (Aug.  5) 
and  offer  some  comments  on  the  same. 

Referring  to  previous  correspondence  with  me  on  the  subject  of 
the  adaptation  to  American  needs  of  the  German  Landwirthschafts- 
rat  system,  the  Senator  spealcs  of  an  ''  agricultural  organization  com- 
mittee of  America"  which,  he  learns,  is  being  formed  ''under  the 
presidency  of  Mr.  Gifford  Pinchot,"  and  he  goes  on  to  say: 

Our  Agricultural  Department,  through  Dr.  Carver,  is  undertaking  that  identical  work. 
Why  not  leave  it  there,  with  our  American  commission  cooperating? 


INTERNATIONAL  INSTITUTE   OF  AGRICULTURE  AT   ROME,  41 

I  am  inclined  to  concur  with  Senator  Fletcher's  suggestion.  This 
work  should  be  done  jointly  by  the  Government  of  the  United  States, 
through  its  Department  of  Agriculture,  and  by  a  national  organiza- 
tion like  that  of  which  Senator  Fletcher  is  the  presiding  officer,  the 
name  of  which  is  the  Permanent  American  Commission  (on  Agricul- 
tural Finance,  Production,  Distribution,  and  Kural  Life). 

Acting  through  a  joint  organization  of  the  nature  of  the  one  con- 
templated would  be,  I  believe,  an  essential  factor  in  the  economic 
development  of  American  agriculture. 

It  is  now  over  a  year  ago  that  I  drew  Senator  Fletcher's  attention 
to  the  utility  in  Germany  of  the  Landwirthschaftsrat,  and  of  the 
similar  institutions  in  Austria  and  some  other  European  countries. 
The  Landwirtschaftsrat  is  an  organization  of  vital  economic  impor- 
tance to  Germany.  It  can  be  adapted  with  few  and  minor  changes 
to  American  needs.  While  the  American  commission  was  on  its 
tour  of  investigation  in  the  European  countries  it  made  some  inquiries 
on  this  subject,  the  results  of  which  can  be  supplied  you  by  Senator 
Fletcher.  In  addition  to  this  I  would,  if  desired,  send  on  further 
detailed  information,  as  the  principal  officers  of  these  organizations 
both  in  Germany  and  Austria  are  my  colleagues  on  the  general  assem- 
bly of  the  International  Institute  of  Agriculture  and  would  there- 
fore, I  feel  almost  sure,  be  pleased  to  furnish  me  with  further  par- 
ticulars. 

The  Landwirtschaftsrat,  or  Council  of  Agriculture,  is  a  national 
organization  of  semiofficial  character,  under  the  auspices  of  the  Ger- 
man Government,  operating  under  imperial  German  law,  and  on 
which  are  represented  the  voluntary  associations  of  farmers.  Its 
functions  are  to  promote  the  economic  condition  of  agriculture  and 
to  act  as  an  officially  recognized  advisory  body  to  the  Government  on 
all  economic  questions  affecting  agriculture. 

The  joint  effort  of  your  department,  acting  in  conjunction  with  a 
national  organization  reaching  the  associated  farmers,  would,  in  my 
opinion,  be  the  most  effective  means  of  materializing  such  an  asso- 
ciation in  the  United  States. 

The  needs  for  such  an  organization  can  best  be  represented  by 
an  illustration.  Let  us  suppose  there  are  two  manufacturing  plants, 
two  factories  supplied  with  electric  power.  The  first  has  its  mres 
all  connected  to  a  dynamo  whence  the  power  can  be  transmitted 
to  any  part  of  the  plant  at  will.  The  second  has  also  a  dynamo 
and  machinery,  all  in  order,  but  with  the  wires  disconnected  at  the 
vital  point;  turn  on  the  power  and  it  runs  off  into  space;  it  does 
not  operate  the  machinery. 

The  first  plant,  the  one  in  which  the  wires  are  connected  up  with 
the  dynamo,  may  be  compared  to  the  Landwirtschaftsrat  system 
operating  in  Germany.  The  second  plant,  in  which  the  wires  are 
disconnected,  may  be  compared  to  the  systems  operating  in  the 
United  States. 

Now,  if  any  such  system  as  the  Landwirtschaftsrat  were  to  be 
founded  in  the  United  States  solely  as  a  Government  institution, 
it  would  become  inoperative,  because  governments  can  not  initiate 
and  carry  out  dynamic  labor  among  private  associations;  govern- 
ments are  necessarily  static.  And,  on  the  other  hand,  an  institution 
like  the  one  above  referred  to,  if  conducted  solely  under  unofficial 
auspices,  would  be  likely  to  become  inoperative  or  to  degenerate 


42  INTERNATIONAL  INSTITUTE   OF  AGRICULTURE  AT  ROME. 

into  serving  selfish  ends.  The  cooperation  between  the  official  and 
the  nonofiicial  factors  composing  the  German  Landwirtschaftsrat 
confers  on  it  that  equable  poise  which  renders  it  so  useful  a  factor 
in  the  economic  life  of  the  German  people.  The  same  needs  which 
call  for  this  Landwirtschaftsrat  in  Germany  call  for  it  in  the  United 
States. 

There  is  yet  another  and  important  reason  why  the  cooperation 
of  Senator  Fletcher's  organization  should  be  enlisted  by  you  in  this 
work. 

The  conference  on  rural  credits,  held  at  Nashville  (April,  1912), 
under  the  auspices  of  the  Southern  Commercial  Congress,  led,  as  is 
well  known,  to  two  results.  On  the  one  hand,  the  diplomatic  officers, 
under  the  chairmanship  of  Ambassador  Herrick,  were  instructed  to 
make  an  official  inquiry  into  the  European  systems  of  cooperative 
rural  credits.  On  the  other  hand,  the  American  commission,  in 
conjunction  with  the  United  States  commission  appointed  by  Presi- 
dent Wilson,  came  to  Europe  and  made  an  exhaustive  investigation 
into  the  systems  in  the  several  countries.  While  no  general  con- 
clusion as  to  the  details  and  modes  of  adaptation  of  these  systems 
in  the  United  States  has  so  far  been  formulated,  yet  the  economic 
advantage  due  to  their  operation  in  the  European  countries  is  so 
obvious  that  it  is  quite  safe  to  predict  that  some  general  system 
along  these  lines,  safeguarded  by  State  and  National  legislation, 
will  be  shortly  presented  to  the  American  people  for  adoption. 
Pending  this  event,  however,  a  danger  presents  itself.  Schemes 
are  being  offered  for  public  recognition,  pressed  forward  on  claims 
some  of  which  are  so  patently  divergent  from  facts  as  to  warrant  the 
conclusion  that  these  schemes  are  dangerous  misrepresentations 
which,  if  permitted  to  operate,  would  be  likely  to  lead  to  wide- 
spread ruin. 

As  an  example,  let  me  quote  from  the  announcement  of  one  of 
these  schemes,  set  forth  in  the  San  Francisco  Examiner  of  July  22. 
The  article  referred  to  states  that  the  project — 

is  built  along  the  lines  of  those  that  have  proved  successful  throughout  Europe  *  *  * 
lines  that  have  made  the  Luzzatti  institutions  throughout  Italy  and  the  cooperative 
land  banks  of  Germany  and  Austria  such  helpful  sources  of  financial  aid  to  all  men 
who  derive  their  living  from  the  soil. 

We  are  then  given  to  understand  that  the  plan  has  "already 
received"  financial  support  "from  the  big  commercial  houses  and 
important  capitalists  connected  with  the  world  of  business,"  and 
calls  for — 

an  authorized  capital  of  $10,000,000  *  *  *  51  per  cent  of  the  stock  will  be  placed 
in  the  hands  of  five  trustees  *  *  *  The  bank  will  maintain  an  investment  depart- 
ment where  its  stockholders  could  at  all  times  obtain  the  best  advice  as  to  the  invest- 
ment of  their  sm-plus  funds  *  *  *  As  an  example  of  the  successful  operation  of 
a  similar  plan,  a  man  by  the  name  of  Luzzatti,  in  Milan,  opened  his  first  bank  in  1866 
widi  1140  capital.  Following  this  plan,  he  has  to-day  over  700  banks,  with  a  working 
capital  of  nearly  $200,000,000. 

It  would  be  difficult  to  find  in  a  like  number  of  sentences  a  greater 
number  of  misrepresentations.  In  the  first  place,  the  project  out- 
lined is  not  at  all  on  the  lines  of  the  Luzzatti  institutions;  in  fact,  it 
does  not  follow  the  plan  of  the  European  systems  at  aU.  The 
European  systems  do  not  permit  of  "51  per  cent  of  the  stock"  being 
controlled  by  capitalistic  trustees.     They  do  not  maintain  an  "invest- 


INTERNATIONAL  INSTITUTE   OP  AGRICULTURE   AT   ROME.  43 

ment  department"  for  the  surplus  funds  of  their  stockholders. 
Luzzatti  does  not  have  "  to-day  700  banks  with  nearly  .1200,000,000  " ; 
the  fact  is  that  Luzzatti  has  not  even  a  sinole  bank,  and  if  he  has  any 
investments  in  the  cooperative  rural  banks  at  all  it  is  safe  to  say 
that  they  are  merely  for  a  nominal  sum,  perhaps  $100. 

In  a  communication  of  June  7  from  Senator  Fletcher,  he  inclosed 
a  scheme  of  rural  credits  proposed  by  Mr.  Charles  Hall  Davis,  on 
which  he  asked  my  opinion,  saying: 

I  am  asking  that  you  read  it  carefully  and  return  the  same  to  me  with  such  com- 
ments as  will  set  out  as  fully  as  you  may  your  views  on  the  subject. 

In  my  reply  I  tried  to  show  the  grave  danger  of  experimenting  with 
new  and  untried  schemes  in  this  field,  as  such  experiments  have 
frequently  led  to  disastrous  results.  Years  of  inquiry  on  this  sufe- 
ject  with  primary  authorities  on  the  European  cooperative  rural 
credit  systems  lead  me  to  believe  that  it  would  be  safest  for  the 
American  people  to  avoid  experimenting  \vith  novelties  in  this  field. 
I  therefore  presented  what  seemed  to  me  the  most  practical  basis 
for  an  American  system,  viz,  the  German  Landschaften  plan.  I  am 
inclosing  a  few  copies  of  this  document  for  your  consideration. 
(S.  Doc.  No.  123.)  I  sent  a  copy  of  it  to  Ambassador  Herrick,  and 
in  a  communication  from  Paris  of  August  21  he  says: 

I  think  your  statement  to  Senator  Fletcher  the  most  comprehensive  I  have  ever 
read. 

I  would  strongly  recommend  that  this  system,  the  Landschaften 
system,  be  closely  studied  by  your  department,  as,  in  my  opinion,  it 
offers  in  the  main  a  solution  for  the  rural  credit  problem  in  the 
United  States.  Senator  Fletcher  could  supply  you  with  that  por- 
tion of  the  American  commission's  investigations  relating  to  this 
system,  and  if  desired  I  could  supplement  this  with  additional 
information  from  primary  sources  here. 

Clearly  the  "psychologic  moment"  has  arrived  for  action;  action 
by  the  United  States  Government.  Having  set  the  investigation 
on  foot,  with  the  wide  pubUcity  which  this  engendered,  it  is  now 
incumbent  on  the  Government  to  finish  the  work  it  began.  And 
to  this  end  it  would  seem  to  me  that  the  preliminary  steps  should  be: 

First.  For  your  department  to  join  hands  with  Senator  Fletcher's 
organization  and  to  jointly  undertake  the  task  of  neutraUzing  any 
ill-digested  or  untrustworthy  credit  schemes  which  may  be  offered. 

Second.  To  direct  this  joint  action  toward  devising  and  instituting 
in  the  United  States  an  adaptable  form  of  the  Landwirtschaftsrat. 

Third.  To  take  joint  action  toward  laying  down  the  general  Unes 
which  should  form  the  basis  for  a  safe  and  conservative  cooperative 
rural  credit  system,  such  as  would  best  promote  the  economic 
interests  of  the  American  people. 

I  am  sending  a  copy  of  this  communication  as  an  addenda  to  my 
report  to  the  Secretary  of  State. 

With  high  esteem,  I  have  the  honor  to  remain, 
Yours,  sincerely, 

David  Lubin, 
Delegate  of  the  United  Stater, 
International  Institute  of  Agriculture,  Rome,  Italy. 


44       international  institute  of  ageicultuee  at  rome. 

August  27,  1913. 
Hon.  William  C.  Redfield, 

Secretary  of  Commerce,  Washington,  D.  C. 

Dear  Mr.  Secretary:  In  accordance  with  the  action  taken  by 
the  general  assembly  of  the  International  Institute  of  Agriculture  in 
1911,  the  publication  of  the  institute's  Commercial  Bulletin  began  in 
March,  1912.  It  has  since  then  been  incorporated  as  the  second  part 
of  the  institute's  monthly  Bulletin  of  Agricultural  Statistics.  The 
Commercial  Bulletin  gives  the  data  for  the  exports,  imports,  and 
visible  stocks  of  the  cereal  and  cotton  crops,  and  also  the  prices 
quoted  for  the  same  on  the  principal  market  centers  of  the  world. 

The  pubUcation  of  the  ruling  prices  on  the  world's  market  centers 
was  deemed  an  important  step.  The  argument  brought  forward  in 
its  favor  was  that  this  information  would  help  all  concerned  to  judge 
whether  the  ruling  price  in  a  given  locaUty  bore  an  equitable  relation 
to  the  world  price. 

On  the  appearance  of  the  first  few  issues  of  the  Commercial  Bulletin 
certain  criticisms  were  made  on  the  floor  of  the  permanent  committee 
on  the  mode  of  presenting  these  prices.  It  was  contended  that  the 
mere  statement  of  the  prices  ruling  on  the  market  centers  was  insuffi- 
cient for  the  purposes  they  were  intended  to  serve. 

For  instance,  the  Commercial  Bulletin  of  November  22,  1912,  gave 
the  following  as  the  ruhng  prices  for  wheat: 

Antwerp,  20.42;  Paris,  27.70;  Liverpool,  20.27;  Budapest,  25.20;  Winnipeg,  15.04; 
Chicago,  16.09;  Kansas  City,  14.85;  Minneapolis,  15.26;  and  Buenos  Aires,  17.05. 

But  why  was  it  that  the  price  was  27.70  in  Paris,  14.85  in  Kansas 
City,  20.27  m  Liverpool,  and  25.20  in  Budapest? 

Operators  in  the  market,  who  deal  in  large  quantities,  obtain  addi- 
tional and  subsidiary  data  which  they  employ  competent  calcula- 
tors to  cast  mto  definite  shape,  so  as  to  have  the  facts  in  such  form 
as  to  enable  them  to  determine  the  equitable  relation  between  the 
local  price  and  the  ruling  world  price,  and  shape  their  operations 
accordingly.  But  those  who  can  not  afford  to  do  all  this  have  no 
such  information  and  are  necessarily  forced  into  vague  guesses  or 
have  to  trust  to  chance.  It  therefore  follows  that  the  mere  publi- 
cation of  the  price  quotations  without  these  subsidiary  data  would  be 
of  no  practical  value. 

There  is  a  way,  however,  of  having  the  International  Institute  of 
Agriculture  officially  prepare  this  information  and  set  it  forth  in  its 
Commercial  Bulletin  so  that  it  would  mform  all  concerned  as  well 
or  even  better  than  the  few  great  operators  are  now  informed. 

The  principal  factors  which  go  to  form  the  price  of  the  staples  of 
agriculture  in  each  of  the  market  centers  are  the  following:  (1)  The 
summary  of  the  world's  supply;  (2)  the  price  paid  to  the  farmer; 
(3)  custom's  duty;  (4)  brokerage;  (5)  insurance;  (6)  cost  of  trans- 
portation. 

It  was  proposed  that  the  institute  obtain  the  current  information 
on  each  of  these  items  and  publish  it  for  the  different  market  centers, 
so  that  by  giving  the  current  price  at  the  world's  market  centers 
along  with  the  factors  which  go  to  shape  it,  much  the  same  as  in  a 
double-entry  system  of  bookkeeping,  it  would  be  possible  to  deter- 
mine whether  the  selling  price  m  a  given  locality  was  in  equitable 
relation  to  the  current  ruling  price  at  the  world's  purchasing  centers 
to  the  world's  price. 


INTERNATIONAL  INSTITUTE   OF  AGKICULTUKE   AT   ROMB. 


45 


Let  me  quote,  as  an  example  of  what  I  mean,  an  illustration 
kindly  furnished  me  in  1905  by  Mr.  John  McGuirk,  secretary  of  the 
Liverpool  Corn  Trade  Association: 


[Shillings  per  quarter. of  8  bushels.] 


Price 
paid  to 
farmer. 

Transportation. 

Insur- 
ance. 

Storage, 
hauling 
charges, 
and  in- 
terest. 

Mer- 
chant's 
profit 
and 
broker's 
commis- 
sion. 

Price  in 
Liver- 
pool or 
Antwerp. 

Rail. 

Ocean. 

United  States 

s.   d. 
22    7 
19    6 
17    6 
19    1 

s.   d. 

3  0 

4  0 
6    0 

5  0 

s.   d. 

2  0 
4    0 
4    0 

3  0 

s.   d. 

0    2 

3 

3 

2 

s.   d. 
1    3 

9 
1    3 

9 

s.   d. 
1    0 
1    6 

1  6 

2  0 

s.    d. 
30    0 

30    0 

30    0 

30    0 

The  proposal  to  publish  these  items  of  information  in  the  Commer- 
cial Bulletm  in  the  manner  set  forth  was  rejected  for  the  time  being 
on  the  ground  that  some  of  the  essential  data  would  have  to  be 
obtained  from  unofficial  sources  and  would,  therefore,  have  to  be 
excluded  from  the  institute's  Commercial  Bulletin. 

It  was  subsequently  pointed  out  that  this  conclusion  was  not 
necessarily  final,  for  the  Governments  could  obtain  these  data  from 
the  available  sources  and  transmit  them  to  the  institute,  thus  ren- 
dering the  information  official. 

As  a  result  of  this  presentation,  the  matter  is  now  pending,  and  I 
feel  sure  that  your  valued  and  powerful  support  would  materially 
aid  me  in  carrying  the  measure  in  the  institute. 

Before  dismissing  this  subject  I  deem  it  essential  to  draw  your 
attention  to  the  important  results  which  it  would  be  possible  to 
attain  through  the  publication  of  the  data  on  cost  of  transportation, 
which  form  item  6  of  the  factors  in  price  formation  given  on  page  2 
of  this  communication. 

It  is  a  well-known  fact  that  the  cost  of  ocean  carriage  for  the 
staples  of  agriculture  affects  their  home  price;  not  merely  the  price 
for  the  quantity  imported  or  exported,  but  the  price  for  the  entire 
quantity  in  the  home  market.  To  illustrate:  If  the  ruling  price  for 
a  bushel  of  wheat  is  a  dollar  at  Liverpool,  it  ought  to  be  a  doUar  in 
Seattle,  Wash.,  less  the  cost  of  necessary  deductions  for  bringing  that 
bushel  of  wheat  from  Seattle  to  Liverpool.  Now,  say  there  are  100 
bushels  of  wheat  at  Seattle,  30  of  which  are  for  export  to  Liverpool 
and  70  for  home  consumption.  If  the  charge  to  be  deducted  is  at 
the  rate  of  10  cents  a  bu  ;hel,  or  $3  for  the  30  bushels,  the  ruUng  home 
price  for  the  100  bushels  vnW  be  $70;  but  if  the  charge  to  be  deducted 
be  5  cents  a  bushel,  or  $1.50  for  the  30  bushels,  then  the  home  price 
for  the  100  bushels  will  be  S95;  for  the  export  and  the  home  price 
of  the  staples  of  agriculture  is  always  the  same. 

It  will  thus  be  seen  that  the  cost  of  ocean  carriage  on  the  staples 
of  agriculture  not  alone  affects  the  producer  whose  product  is  sold  for 
exportation,  but  it  affects  Ukewise  the  producer  whose  products  are 
consumed  in  the  home  market.  It  not  alone  affects  the  producer, 
but  it  also  aft'ects  the  consumer;  it  affects  all  the  people. 

Now,  it  seems  to  me  that  the  publication  of  the  data  on  the  world's 
supply  of  the  staples,  on  the  cost  of  carriage,  and  on  the  price,  if  given 


46  INTEENATIONAL  INSTITUTE   OF   AGEICULTUEE   AT   ROME. 

in  the  Commercial  Bulletin  of  the  institute  for  a  series  of  years  and 
in  the  form  contemplated,  would,  in  the  first  place,  bripg  before  all 
concerned  comparable  data  which  could  be  turned  to  economic  use. 

Secondly,  from  a  consultation  with  the  leading  officers  of  the  British 
Mercantile  Marine  Associations  in  London,  I  am  led  to  the  conclusion 
that  if  the  data  above  referred  to  were  available  it  would  be  possible 
to  effect  economic  changes  in  the  cost  of  ocean  carriage  through 
cooperative  action  of  farmers  and  merchants.  If  the  shipowners 
could  count  on  a  full  outgoing  and  return  cargo,  they  could  afford 
to  charge  a  lower  price  for  cost  of  carriage  than  would  be  charged 
otherwise. 

Now,  it  seems  to  me  it  would  be  feasible  to  bring  this  about.  The 
first  essential  step  in  this  direction  in  the  United  States  would  be  the 
adaptation  and  adoption  of  the  German  Landwirtschaftsrat  system, 
with  its  chambers  of  agriculture  all  federated  in  a  national  central 
organization.  (Please  see  inclosed  copy  of  letter  to  Secretary  Hous- 
ton.) This  federation,  acting  jointly  with  the  federated  chambers  of 
commerce,  could  so  arrange  matters  as  to  have  the  main  bulk  of  the 
incoming  cargoes  of  merchandise  moved  at  a  time  when  the  same 
ships  would  find  fuU  return  cargoes  of  the  staples  of  agriculture  for 
exportation. 

it  would  seem  to  me  that  cooperative  action  between  your  depart- 
ment and  the  Department  of  Agriculture  could  soon  place  this  whole 
matter  in  tentative  shape.  When  in  London  with  the  American  com- 
mission last  July  I  brought  this  subject  up  with  Sir  Sydney  Olivier, 
permanent  secretary  of  the  British  Board  of  Agriculture,  who  seemed 
to  view  that  matter  sympathetically,  as  did  also  officials  representing 
New  Zealand  and  South  Africa.  Besides  this  I  have  had  favorable 
communications  on  this  head  from  the  prime  minister  of  New  Zealand. 
From  all  this  I  am  led  to  believe  that  Great  Britain  and  her  colonies 
would  be  inclined  to  second  favorable  action  by  the  United  States 
along  these  fines. 

I  shall  await  with  interest  an  outhne  of  your  views  on  this  subject 
for  guidance  in  my  action  in  the  institute. 

With  high  esteem,  I  have  the  honor  to  remain, 

Yours,  sincerely, 

David  Lubin, 
Delegate  of  the  United  States, 
International  Institute  of  Agriculture,  Rome,  Italy. 


THE  lANDSCHAFTEN  SYSTEM  OF  RURAL  CREDITS.* 

Dresden,  June  22,  1913. 
Hon.  Duncan  U.  Fletcher, 

United  States  Senate,  Waskmgton,  D.  C. 
Dear  Senator  Fletcher:  I  have  your  letters  witli  inclosures  of 
June  6  and  7.     In  your  letter  of  the  7th  you  hand  me  the  article  of 
Mr.  Charles  Hall  Davis  of  June  3,  wherein  he  speaks  of  his  plan  for 
State  rural  banks,  and  you  say: 

I  am  asking  that  you  read  it  carefully  and  return  the  same  to  me  with  such  com- 
ments as  will  set  out  as  fully  as  you  may  your  views  on  the  subject. 

I  have  gone  over  the  article,  and  am  of  the  opinion  that  Mr.  Davis 
is  deserving  of  credit  for  the  manner  of  his  presentation.  His  paper 
seems  to  be  clear  and  logical,  but  whether  his  plan  will  be  practicable 
is  a  different  proposition. 

In  my  opinion  it  would  be  safest  at  this  time  to  avoid  being  tempted 
to  take  up  with  any  new  plan,  however  well  and  ably  presented,  how- 
ever sound  the  seeming  logic  of  its  premise.  The  risk  is  too  great 
for  experimental  ventures,  for  failure  in  a  material  direction  would 
be  likely  to  bring  about  suffering  and  ruin  to  many. 

There  is,  however,  no  need  of  venturing  out  in  the  field  of  a  new 
plan,  for  there  are  the  tried  plans  in  the  European  countries,  plans 
which  have  been  in  operation  for  years,  plans  which  are  in  operation, 
plans  of  incalculable  benefit  to  the  farmers  of  Europe,  plans  which 
would  be  of  equal  benefit  to  the  farmers  of  the  United  States.  That 
some  changes  will  have  to  be  made  before  any  of  the  plans  will  be 
adaptable  to  the  conditions  of  the  American  people  may  be  admitted, 
but  in  no  instance  should  this  change  be  introduced  at  the  expense 
of  prospective  security.  There  should  be  no  accommodation  on  that 
account. 

I  have  previously  pointed  out  to  you  that  in  my  opinion  the  most 
adaptable  plan,  and  that  allowing  of  widest  application  in  the  United 
States,  would  be  the  Landschaften  system,  provided  that  it  be  intro- 
'  duced  in  the  United  States  with  all  the  safeguards  that  surround  it 
here  in  Prussia.  With  these  safeguarding  features  slackened  or 
vitiated,  the  Landschaften  system  in  the  United  States  would  be 
likely  to  become  a  two-edged  sword  of  destruction  and  ruin. 

In  my  opinion  there  is  no  reason  why  the  Landschaften  can  not 
be  adopted  in  the  United  States  with  the  same  safeguarding  features 
that  operate  in. Prussia.  The  plan  of  the  Landschaft  is  so  simple 
that  it  may  be  explained  to  and  understood  by  any  person  of  average 
intelligence.  Given  State  and  national  laws  enacted  for  the  United 
States  on  the  basis  of  the  European  safeguarding  method,  and  the 
matter  becomes  quite  easy.  A  body  of  citizens  in  a  certain  locality, 
presumably  neighbors,  form  a  Landschaft  operating  under  State  and 


1  Letter  from  Hon.  David  Lubin,  delegate  of  the  United  States  to  the  International  Institute  of  Agricul- 
ire_,  Rome,  to  Hon.  Duncan  U.  Fletcher,  chairman  American  Commission  to  Investigate  and  Study 
gneultural  Cooperation  and  Rural  Credits  in  Europe,  published  as  S.  Doc.  No.  123,  63d  Cong.,  1st  sess. 

47 


48  INTERNATIONAL  INSTITUTE    OF   AGRICULTURE   AT   ROME. 

national  laws.  As  in  operation  in  Prussia  this  Landschaft  has  lim- 
ited functions,  restricted  in  the  main  to  the  trusteeship  of  the  mort- 
gages on  which  it  issues  the  Landschaft  bonds.  As  stated  to  the 
American  commission  at  the  meeting  at  Dresden  by  Hofrat  Bach, 
the  ''Landschaften  are  an  association  of  borrowers,  in  contradistinc- 
tion to  the  joint-stock  mortgage  banks,  which  are  associations  of 
lenders." 

The  Landschaft  transacts  no  banking  business  whatever;  in  fact, 
it  transacts  no  business  except  that  above  stated — that  is,  it  gives  the 
borrower  a  bond  for  his  mortgage ;  the  borrower  then  proceeds  to  sell 
the  bond  in  the  open  market  and  puts  the  money  in  his  pocket,  and 
that  is  the  end  of  the  money  so  far  as  the  Landschaft  is  concerned. 
All  it  asks  of  the  borrower  is  to  hand  in  the  interest  and  amortization 
on  his  bond.  If  he  does  not  do  this,  the  Landschaft  takes  possession 
of  his  land,  has  it  sold  to  the  highest  bidder,  and  returns  to  the  bor- 
rower any  balance  left  over  above  the  amount  for  which  he  was 
given  a  bond,  and  the  costs.  The  Landschaft  can  do  this  in  Prussia 
without  any  recourse  to  a  lawsuit.  Substantially,  the  Landschaft  in 
all  this  has  the  power  of  final  decision  vested  in  a  supreme  court. 
If  no  such  power  can  be  granted,  then  it  would  be  unsafe  to  have  a 
Landschaft  in  the  United  States ;  in  fact,  we  could  not  have  it,  for  the 
purpose  of  the  Landschaft  is  to  secure  long-time  loans  with  amortiza- 
tion at  3,  34,  and  4  per  cent,  and  this  interest  rate  would  double  or 
treble  itself  as  soon  as  doubt  as  to  the  vaUdity  of  titles  and  other 
questions  between  borrower  and  lender  would  be  considered  admissi- 
ble. The  Landschaft  in  Prussia  has  no  such  questions  to  contend 
with.  The  Landschaft  directors  foreclose  without  recourse  to  law- 
suits.    Their  decision  is  final. 

And  the  question  may  be  asked.  Would  not  such  a  Landschaft  sys- 
tem be  hkely  to  lend  itself  to  failure  through  dishonesty  or  incom- 
petency on  the  part  of  the  directors?  It  certainly  would  if  it  were 
not  for  the  safeguard  furnished  by  State  and  National  laws.  In 
Prussia  this  safeguard  is  the  sine  qua  non  of  the  Landschaft.  One 
of  the  members  of  the  board  of  directors  of  the  Landschaft  is  ap- 
pointed by  the  King — appointed  for  life — while  the  other  members 
are  in  substance  semigovernment  ofiicials  so  long  as  they  hold  the 
position  of  directors  of  the  Landschaft.  It  is  the  safeguarding,  the 
rigorous  safeguarding,  of  this  system  by  the  Prussian  Government 
that  gives  the  bonds  the  high  value  they  have  in  the  open  market  and 
which  makes  them  salable  at  the  low  rate  of  interest  which  is  paid  on 
them.  Remove  this  Government  safeguard  and  the  bonds  will  slump 
in  price  at  once,  and  the  interest  would  have  to  be  doubled  or  trebled 
before  they  would  sell.  In  fact,  such  bonds  would  not  sell  at  all,  for 
a  bond  in  the  open  market,  subject  to  the  law  of  a  certain  district, 
administered  in  that  district,  may  only  have  a  limited  and  a  local 
value.  Such  a  bond  would  not  be  Uquid ;  it  can  not  be  hquid,  and  to 
attempt  to  make  it  so  would  but  invite  ruin.  The  need  for  national 
government  safeguard  is  clearly  indicated  in  the  statement  made  to 
the  American  commission  at  the  Dresden  hearing  (June  22,  1913), 
which,  in  speaking  of  cooperative  credit  societies  before  national  law 
was  enacted  for  their  safeguarding,  says: 

All  these  societies  did  a  good  business  *  *  *  imtil  a  crash  came  in  1873  and 
swept  away  the  Vorschuss  Vereiti  with  it — many  were  rendered  bankrupt,  others 
forced  to  go  into  liquidation.    *    *    *    In  this  way  the  further  life  of  such  societies 


INTERNATIONAL   INSTITUTE    OF   AGRICULTURE   AT    ROME.  4'9 

practically  ceased  in  Saxony  for  the  next  20  years  or  so;  but  in  1889  came  the  great 
German  imperial  law,  which  is  to  be  thanked  for  the  splendid  revival  of  cooperative 
societies  in  Germany. 

This  law  provides  for  the  rigorous  Government  supervision  of  all 
cooperative  credit  societies. 

So,  then,  we  must  either  have  the  Landschaft  system  safeguarded  in 
the  United  States  by  State  and  by  National  law  and  administered  as 
rigorously  as  in  Prussia,  or  we  can  have  no  Landschaft  system  oper- 
ating safely  in  the  United  States. 

In  my  opinion  it  will  be  found  just  as  possible  to  have  the  Land- 
schaft system  in  the  United  States  as  it  is  to  have  it  in  Germany; 
for  what  will  be  asked  of  the  United  States  ?  Will  it  be  to  lend  the 
farmers  money  ?  No.  Will  it  be  that  the  Government  of  the  United 
States  should  guarantee  the  bonds  ?  No.  WTiat  then  ?  The  United 
States  will  simply  be  asked  to  act  as  umpire  between  borrower  and 
lender.  The  United  States  is  to  see  that  both  parties  adhere  strictly 
to  the  terms  of  the  contract.  That  is  all.  And  it  may  be  that  some 
simple  mode  of  procedure  can  be  put  in  operation  toward  this  end 
without  at  all  infringing  upon  the  Constitution.  Perhaps  this  can 
be  done  through  some  such  body  as  the  Interstate  Commerce  Com- 
mission, or  by  some  other  body  created  for  that  purpose.  Such  body 
should  be  granted  the  right  of  dealing  with  the  bonds  issued  in  one 
State  and  bought  and  held  by  citizens  of  various  States  of  the  United 
States;  clearly  an  interstate  transaction. 

I  have  before  me  the  financial  supplement  of  the  Vossische  Zeitung 
of  Berlin  (June  13),  giving  stock-exchange  quotations.  Ample  space 
is  given  for  the  quotations  of  the  Landschaft  bonds.  Let  us  compare 
a  few  of  these  quotations  with  those  given  in  the  same  paper  for  the 
Government  bonds  of  Germany  for  the  same  day. 


Government 
bonds. 


Landschaft 
bonds. 


4  per  cent.. 
31  per  cent. 
3"per  cent . . 


96.00 
84.80 
74.80 


100.00 
96.00 
80.50 


From  this  it  will  be  seen  that  the  Landschaft  bonds  stand  higher 
in  the  open  market  than  the  Government  bonds  bearing  the  same 
rate  of  interest. 

And  now  another  point.  It  may  seem  that  the  Landschaft  system 
would  only  be  in  the  interest  of  the  American  farmer.  This,  how- 
ever, is  but  one  phase  of  its  benefits,  and  by  no  means  the  only 
important  one.  There  is  another  section  of  the  community  of  equal 
importance  to  the  farmers,  if  not  more  so,  to  whom  the  benefits  of 
such  a  system  would  go.^  I  refer  to  the  widows  and  orphans.  Above 
all  investors  these  require  the  greatest  security  and  are  at  the  same 
time  by  themselves  the  least  capable  of  investors.  Be  it  understood 
that  making  a  safe  investment  of  money  is  a  perplexing  and  difficult 
task  even  for  a  man  well  posted  in  matters  of  finance.  How  much 
the  more  so  for  women,  who  have  had  very  limited  or  perhaps  no 
experience  at  all  in  the  investment  of  money.  It  is  incumbent  upon 
the  National  Government  to  aid  in  the  safeguarding  of  such  funds, 
S.  Doc.  196,  63-1 4 


50  INTERNATIONAL  INSTITUTE   OF   AGEICULTUEE   AT  EOME. 

for  if  it  be  the  duty  of  government  to  be  policeman,  umpire,  in  the 
matter  of  equity  between  individuals,  in  the  preservation  of  the  sanc- 
tity of  contracts,  it  is  certainly  within  its  province  to  spread  its 
sheltering  wings  over  the  otherwise  defenseless  funds  of  the  widows 
and  orphans. 

And  in  this  we  are  taught  a  lesson  from  the  example  of  Germany. 
The  Prussian  Landschaft  is  in  the  main  an  institution  affording  a 
safe  investment  for  the  funds  of  the  widows  and  orphans.  The 
safeguarding  of  the  Landschaft  by  the  Prussian  Government  renders 
its  bonds  so  high  and  the  interest  so  low  as  to  preclude  their  pur- 
chase by  professional  money  lenders.  Their  almost  absolute  security, 
however,  renders  these  Landschaft  bonds  as  safe  an  investment  and 
with  less  chance  of  fluctuation  on  the  open  market  than  Government 
bonds,  as  illustrated  by  the  quotations  above  given.  They  are  there- 
fore largely  bought  as  investments  for  the  funds  of  the  widows  and 
orphans,  and  consequently  are  so  securely  safeguarded  by  the  Prus- 
sian Government. 

This  commendable  action  on  the  part  of  the  Prussian  Government 
reminds  me  of  an  historic  event  in  past  times  indicating  the  high 
humanitarian  reach  in  this  direction  attained  by  the  people  of  Israel, 
and  the  manly  acquiescence  in  this  exalted  stand  by  the  great  Roman 
general  Pompey.  After  a  stubborn  resistance  Pompey  succeeded  in 
capturing  Jerusalem.  He  and  his  soldiers,  in  an  endeavor  to  recoup 
themselves  for  the  cost  of  the  war,  entered  the  temple  for  the  pur- 
pose of  spoU.  Going  into  the  holy  of  holies,  where  he  expected  to 
find  statues  of  gods  and  goddesses,  images  of  silver  and  gold,  Pompey 
found  a  room  devoid  of  such  statues,  for  it  only  contained  a  great 
golden  candelabra  and  a  golden  table  for  the  shew  bread.  This  was, 
no  doubt,  a  disappointment  to  Pompey.  He  was,  however,  told 
that  there  were  ever  so  many  sacks  of  gold  and  silver  in  the  vault  of 
the  temple.  On  going  there  he  found  a  great  number  of  bags  of 
gold  and  silver,  all  neatly  done  up  with  labels  on  each.  "Why,"  he 
asked  of  the  priest,  "did  you  not  tell  me  of  this  treasure  before?" 
"Because,"  said  the  priest,  "this  is  the  sacred  treasure;  these  bags 
contain  the  funds  of  the  widows  and  orphans  of  the  people  of  this 
country.  We  therefore  consider  them  more  sacred  than  the  offer- 
ings to  God." 

Pompey  thought  for  a  while,  then  ordered  his  soldiers  to  wheel 
about  and  march  out,  and  never  touched  this  treasure. 

And  this  lesson  is  sufficient.  The  American  Government  should 
safeguard  the  funds  of  the  widows  and  orphans,  for  the  American 
people,  like  Israel  of  old,  is  a  righteous  Nation. 

Nor  need  there  be  any  hesitation  at  taking  such  action  on  the 
ground  that  it  would  be  sociahstic;  if  it  be  sociaHstic  at  all  it  is  not 
socialism  of  the  collectivist  order,  but  it  is  on  the  order  of  Herbert 
Spencer,  the  individualist.  Mr.  Spencer  laid  down  the  proposition 
that  the  chief  duty  of  government  is  that  of  policeman,  umpire;  that 
its  chief  duty  is  to  arbitrate  between  contracting  parties;  to  judge 
between  them,  and  to  determine  the  equities. 

And  what  duty  can  be  more  just  for  a  government  than  arbitrament 
in  the  case  of  such  a  body  as  the  Landschaft,  between  the  farmer, 
the  money  borrower,  on  the  one  hand,  and  the  widows  and  orphans, 
the  money  lenders,  on  the  other  ? 


INTERNATIONAL   INSTITUTE    OF   AGRICULTURE   AT    ROME.  51 

In  corroboration  of  the  above  I  wish  to  quote  the  opinion  given 
by  the  eminent  German  economist,  Prof.  Brodnitz,  of  the  Halle 
University.  In  reply  to  my  inquiry  (June  15,  1913)  as  to  what 
guaranty  there  would  be  for  the  rigorous  supervision  of  the  Land- 
schaft,  he  replied: 

The  best  possible,  for  the  bonds  at  the  high  prices  at  which  they  sell  and  at  the  low 
interest  which  they  bring  do  not  tempt  regular  money  lenders  to  invest  in  them. 
They  will  be  bought  up  mainly  as  investments  for  the  funds  of  widows  and  orphans. 
This  being  the  case  there  will  be  every  reason  to  believe  that  these  investments  will 
be  safeguarded  by  the  Government  with  such  caution  and  care  as  to  preclude  all  dan- 
ger of  fraud  or  repudiation.  And  this  great  care  and  caution  would  give  these  bonds 
a  value  as  high  and  perhaps  render  tiiem  steadier  even  than  Government  bonds, 
especially  in  times  of  war  and  panic,  as  for  instance  was  the  case  in  1806  during  the 
Napoleonic  wars,  when  the  Landschaft  bonds  were  high  and  the  Government  bonds 
low. 

Now  that  the  question  of  rural  credits  has  been  so  fully  placed 
before  the  American  people,  it  might  be  presumed  that  the  American 
farmer  had  been  thoroughly  awakened  to  its  importance.  This  is, 
however,  far  from  being  the  fact.  It  is  true  that  the  farmers  of 
America  are  learning  more  and  more  what  it  all  means  as  time  goes 
on,  but  at  the  present  writing  there  are  quite  a  number  of  farmers 
who  are  under  the  impresssion  that  any  system  of  rural  credits  would 
be  an  evil;  they  are  under  the  impression  that  the  best  thing  for  a 
farmer  is  to  keep  out  of  debt  of  any  kind.  These  farmers  fail  to 
realize  the  fact  that  for  a  business  man  or  farmer  to  follow  such  a 
plan  literally  would  require  a  surplus  bank  account  subject  to  call, 
and  therefore  on  deposit  without  interest.  That  is,  quite  a  sum  of 
money  would  have  to  be  lying  by  idle,  doing  nothing,  and  such  a 
mode  of  procedure  is  not  a  gain  but  a  loss.  Moreover,  but  very  few 
farmers  have  such  surplus  money ;  so  what  must  they  do  ?  They  must 
buy  all  they  need  and  pay  for  their  labor  and  raw  material  on  time — 
on  long  time — and  this  means  buying  money  of  the  storekeeper, 
which  means  paymg  the  highest  rate  in  the  world  for  money  instead 
of  the  lowest  rate  in  the  world.  It  further  means  that  such  a  system 
is  not  "keej)ing  out  of  debt"  at  all,  but  keeping  in  debt,  and  at  the 
highest  possible  cost  for  the  debt.  In  fact,  the  American  farmer  has 
yet  to  learn  the  simple  lesson  taught  by  the  experience  of  the  Ameri- 
can merchant.  Say  40  or  50  years  ago  the  American  merchant  could 
not  obtain  money  on  open  account  from  the  bank,  so  he  was  com- 
pelled to  get  into  debt  with  the  jobber,  and  it  was  then  that  the 
jobber  took  from  the  American  merchant  "  all  that  the  traffic  would 
bear";  that  is,  the  jobber  farmed  the  merchant,  and  at  the  present 
time  the  storekeeper  farms  the  farmer,  and  if  the  farmer  would  only 
know  how  much  in  debt  this  supposed  "  not-in-debt "  system  places 
him  it  would  open  his  eyes.  He  would  begin  to  see  that  the  Land- 
schaft system,  instead  of  being  a  proposal  which  would  put  the 
American  farmer  into  debt,  is  just  the  very  system  which  would  put 
him  on  a  cash  basis. 

If  there  be  any  farmers  at  all  that  have  any  doubt  as  to  the  truth 

of  this  statement,  they  can  readily  prove  it.     Let  them  go  through 

the  various  stores  in  the  cities  nearest  to  their  farms.     Let  them  ask 

(  each  of  the  merchants  to  tell  them  whether  they  utilize  the  ciedit 

^  which  their  assets  entitle  them  to  on  the  open  market,  or  whether 

1  they  refuse  to  make  such  use  of  these  assets,  and  the  farmers  would 

presently  find  that  there  is  perhaps  not  a  single  merchant  of  good 


52  INTERNATIONAL  INSTITUTE    OP   AGRICULTURE  AT   ROME. 

standing  who  does  not  avail  himself  of  such  credit.  The  only  ones 
that  are  obliged  to  go  without  it  are  those  who  have  a  reputation 
for  dishonesty  or  incompetency. 

It  should  be  understood  that  the  financial  functions  of  a  business 
can  be  compared  to  the  human  breathing  apparatus.  The  business 
needs  a  winter  stock,  which  must  be  bought  m  summer,  and  a  sum- 
mer stock,  which  must  be  bought  in  winter,  aU  of  which  requires 
surplus  money,  more  money  than  the  mean  average  level.  There 
is  periodic  expansion  and  contraction.  If  the  merchant  has  money 
lying  idle,  ready  for  use  whenever  he  needs  a  dollar,  then  he  is  doing 
business  in  a  clumsy  and  costly  way,  and  quite  unnecessarily  if  he 
has  a  good  standing.  His  assets,  if  backed  by  good  character,  will 
give  him  a  dollar  at  5  per  cent  a  year.  With  this  dollar  in  hand,  he 
can  discount  his  bills  at  the  rate  of  5  per  cent  a  day.  In  fact,  he  can 
discount  and  rediscount  with  the  same  dollar  many  times  over  that 
day  and  return  the  dollar  to  the  bank  and  pay  interest  on  it  at  the 
rate  of  one  three-hundred-and-sixty-fifth  of  5  per  cent  for  the  use  of 
that  dollar  for  that  day.  But  the  most  profitable  use  of  the  money 
that  the  farmer  can  obtain  on  the  security  of  his  assets  will  be  had 
in  using  it  collectively,  through  cooperation,  a  corporation  formed 
for  that  purpose.  With  the  money  that  the  security  of  their  col- 
lective assets  would  give  them  the  cooperative  group  of  farmers,  or, 
if  you  please,  this  corporation  of  farmers,  could  then  perform  all 
the  functions  now  performed  by  the  city  commission  man  and  by 
the  trust.     In  fact,  the  farmers  could  be  their  own  trust. 

"But,"  say  some,  ''what  need  is  there  for  the  Landschaft  when 
farmers  can  act  cooperatively  without  it?"  Yes,  that  is  true;  they 
can  act  cooperatively  without  the  Landschaft,  without  capital.  But 
what  does  such  action  amount  to  ?  It  is  almost  as  ineffectual  for  the 
farmers  to  act  on  such  lines  as  it  would  be  for  the  trusts  were  they 
deprived  of  their  capital  or  credit.  Under  such  circumstances  the 
trust  would  come  to  a  sudden  standstill ;  it  would  cease  to  be  a  trust. 
And  in  the  final  analysis  the  farmer  without  capital  must  remain 
subject  to  the  trusts,  who  have  the  capital.  The  fact  is,  the  collective 
assets  of  the  farmers  could  furnish  a  capital  very  much  greater  than 
the  greatest  of  the  trusts  could  command.  It  is  only  a  questio  i  of 
placing  their  assets  in  an  available  liquid  form. 

In  1885  the  California  fruit  growers,  for  instance,  seeing  that  they 
were  in  the  hands  of  a  couple  of  trusts,  organized  cooperatively  to 
fight  those  trusts.  The  California  trusts  were  each  rated  at  a  million 
dollars  and  over;  the  California  fruit  growers,  for  this  conflict,  only 
had  a  few  hundred  dollars  to  meet  current  expenses ;  and  as  a  result 
of  the  fight  they  have  been  waging  all  these  years,  the  couple  of 
trusts  are  stUl  there,  doing  business  at  the  old  stand,  with  almost 
the  same  power  that  they  had  in  1885.  It  was  the  trusts,  each  capi- 
talized for  a  million  dollars  and  over,  that  did  the  work  and  do  tne 
work.  It  was  several  million  dollars  against  a  couple  of  hundred 
dollars,  and  the  couple  of  million  dollars  won  out  and  will  continue 
to  win  out  on  this  Ime  until  the  end  of  time. 

But  note  how  foolish  and  unnecessary  this  fight  is.  The  trust  has 
a  couple  of  million  dollars,  but  the  California  fruit  growers  could 
double  and  quadruple  that  couple  of  million  dollars  several  times  over 
if  they  were  to  place  their  assets  in  available  liquid  form — in  a  form 
of  which  the  Landschaft  system  would  permit.     And  so  with  the 


INTERNATIONAL  INSTITUTE   OF  AGRICULTURE  AT  ROME.  53 

farmers  everywhere,  they  could  become  the  distributers  of  their  own 
products  through  the  medium  of  the  Landschaf  t  system. 

The  Landschaf t  would  be  the  mode  for  getting  the  money ;  that  is 
all  that  the  Landschaf t  could  do.  The  farmers  could  then  form 
another  cooperative  association,  another  corporation,  their  own  co- 
operative bank,  in  which  they  could  deposit  the  money  obtained  by 
the  sale  of  the  Landschaft  bonds.  This  bank  could  in  turn  first  give 
the  farmers  the  open  account,  which  would  enable  them  to  do  business 
for  cash;  it  could  secondly  furnish  the  money  for  the  cooperative 
distribution  of  the  products  of  the  farm.  All  this  would  make  it 
possible  for  the  farmers  to  form  the  third  and  last  cooperative  group 
or  corporation  for  the  collective  purchase  of  requirements  and  the 
collective  distribution  of  their  products.  There  would  thus  be  three 
distinct  cooperative  groups,  thi'ee  corporations.  First,  the  Land- 
schaft; second,  the  cooperative  bank;  third,  the  cooperative  purchas- 
ing and  distributing  association.  The  safeguarding  proposal  by  the 
State  and  Nation  would  only  refer  to  the  Landschaft  and  not  to  the 
other  two. 

Pertinent  to  this  whole  matter  is  the  very  valuable  suggestion  in 
your  letter  of  June  7,  wherein  you  say: 

Every  city  has  its  chamber  of  commerce;  why  not  have  chambers  of  agriculture 
established  in  the  rural  districts,  and  do  this  for  the  organization  of  the  farmers  in  the 
cultivation,  production,  and  marketing  of  their  crops  and  in  the  financing  of  their 
affairs? 

I  think  that  your  suggestion  hits  the  nail  on  the  head.  These 
chambers  of  agriculture  should  be  federated  into  a  national  cham- 
ber of  agriculture,  holding  periodic  sessions  presided  over  by  the 
Secretary  of  Agriculture  or  the  Secretary  of  Commerce.  Relative 
to  this  matter  I  wish  to  say  that  on  June  20  Dr.  Owens  and  myself 
had  a  lengthy  conference  with  Dr.  Dade,  the  secretary  general  of  the 
Deutsche  Landwirtschaftsrat,  who  gave  a  full  and  clear  exposition 
of  this  organization  and  its  purposes.  The"  discussion  took  the  form 
of  questions  and  answers,  and  I  will  send  you  a  copy  of  the  report  of 
same  as  soon  as  it  is  mimeographed. 

I  think  you  will  read  this  statement  with  keen  interest.  It  will  be 
of  material  assistance  to  you  in  launching  the  chambers  of  agriculture 
for  the  United  States. 

With  the  renewed  assurance  of  my  high  esteem,  I  am, 
Yours,  very  sincerely, 

David  Lubin. 


LETTER  OF  THE  PERMANENT  DELEGATE  OF  THE  UNITED 
STATES  TO  THE  MINISTER  OF  FINANCE  OF  RUSSIA  ON  THE 
FORM  OF  CROP  REPORTS. 

Hotel  d'Europe,  St.  Petersburg. 
To  His  Excellency  Mr.  Vladimir  Nicolaievitch  Kokovtzow, 

Minister  of  Finance,  St.  Petersburg. 

Excellency:  Since  our  interview  last  Thursday  I  presented  the 
subject  of  our  discussion  to  your  ministry  of  agriculture  and  to  your 
ministry  of  commerce  and  industry  and  am  now  of  the  opinion  that 
your  request  for  written  reasons  for  the  demands  of  the  institute  was 
not  alone  reasonable  but  mdeed  necessary.  I  will  therefore  venture 
to  submit  these  reasons  in  writing,  confidently  hoping  that  this  pres- 
entation may  be  one  of  the  means  toward  the  end  in  view. 

The  following,  then,  are  the  reasons  why  the  Russia  '^  conditions  of 
the  growing  crops"  should  be  handed  in  to  the  International  Insti- 
tute of  Agriculture  as  a  percentage  based  on  an  average  in  the  form 
of  a  "single  numerical  statement": 

First.  Because  it  is  the  only  form  in  which  the  data  of  Russia  may 
be  employed  with  those  of  the  other  adhermg  countries,  and  thus 
enable  the  institute  to  reduce  by  mathematical  calculation  the  data 
of  all  the  adhering  countries  to  a  ''single  numerical  statement"  for 
the  world. 

Second.  The  smgle  numerical  statement  of  the  institute  can  not 
be  misinterpreted  or  twisted,  whereas  such  words  as  ''good,"  "very 
good,"  "middling,"  "bad,"  "very  bad,"  are  so  subject  to  misinter- 
pretation and  twisting  that  they  have  no  legitimate  commercial  value. 
As  a  result,  they  are  only  employed  by  manipulators  of  the  markets 
and  at  the  expense  of  producers  and  consumers. 

Third.  To  prevent  the  institute  from  employing  the  data  of  Russia 
on  the  "condition  of  her  growing  crops"  in  the  manner  prescribed 
by  the  institute,  would  be  to  prevent  the  institute  from  giving  the 
status  of  the  world's  supply  in  the  only  form  in  which  it  can  have  a 
commercial  value,  in  the  form  of  a  "single  numerical  statement." 
In  other  words,  it  would  prevent  the  institute  from  performing  the 
principal  function  for  which  it  was  organized. 

It  will  indeed  be  gratifying  to  the  friends  of  the  institute  to  note 
the  favorable  stand  your  excellency  is  pleased  to  take  on  this  subject. 
Your  desire  to  have  the  various  phases  of  the  case  seriously,  logically, 
and  justly  considered  is  seconded  by  some  of  your  worthy  colleagues 
in  the  other  ministries  I  have  visited.  There  are,  however,  some 
opinions  expressed  which  it  is  deemed  essential  should  be  brought 
forward.     Among  them  are  the  following: 

First.  The  opinion  that  it  is  beneath  the  dignity  of  Russia  to  give 
out  statistical  figures  which  are  not  identical  with  facts. 

Second.  That  Russia  performs  her  duty  when  she  gives  out  the 
facts  in  the  case  in  such  terms  as  "good,"  "very  good,"  "middling," 

64 


INTEENATIONAL  INSTITUTE   OP  AGKICULTUEE  AT   ROME.  55 

"bad,"  and  ''very  bad."  And  if  the  private  crop  reporting  agencies 
everywhere  see  fit  to  twist  and  misinterpret  this  information  it  is 
not  Russia's  will  that  they  do  so,  nor  is  it  Russia's  fault. 

These  opinions  seem  at  first  glance  to  be  correct  and  logical,  but  let 
us  first  see  if  they  are  so. 

First.  It  is  true  that  the  data  on  the  "conditions  of  the  growing 
crops  "  are  really  statistical  ?  Can  they  be  called  * '  statistics  "  ?  They 
certainly  can  not,  for  statistics  proper  are  facts  of  the  past.  They 
are  static  facts.  But  when  we  are  considering  the  "conditions  of  the 
growing  crops"  the  fact  is  no  longer  static,  it  is  dynamic.  The  static 
facts  hold  good  for  the  months  of  October,  November,  and  December, 
when  the  harvest  returns  are  collected  and  assembled.  We  are 
then  dealing  with  certain  definite  quantities,  but  when  we  are  viewing 
a  growing  field  in  the  months  of  April,  May,  June,  July,  August,  and 
September,  and  comparmg  the  growth  of  a  certain  month  this  year 
with  the  condition  of  its  growth  of  previous  years  we  are  not  giving 
out  a  statistical  fact  in  the  true  signification  of  the  word  "statistics" 
when  we  say  that  the  present  growth  is  5  per  cent  better  or  5  per  cent 
worse  than  it  was  in  previous  years. 

Second.  Russia  is  certainly  not  performing  her  duty  to  herself 
nor  to  the  other  countries  of  the  world,  when  she  gives  out  the  con- 
dition of  her  growing  crops  in  such  terms  as  "good,"  "very  good," 
"middling,"  "bad,"  and  "very  bad,"  for  by  so  doing  she  gives  the 
private  agencies  the  very  material  that  they  want  in  order  to  permit 
them  to  twist  and  misrepresent  this  information.     Is  this  not  so  ? 

There  is  yet  a  third  reason  given  by  the  objectors  to  the  "single" 
numerical  statement."  They  say,  "How  can  we  make  a  statement 
that  the  crop  looks  5  per  cent  better  or  5  per  cent  worse,  when  a  week 
after  that  report  is  out,  the  crop  may  be  destroyed  by  hail  or  by  some 
other  cause  ?"  This  seems  a  sound  argument,  but  is  it  so  ?  The  con- 
dition of  the  growing  crop  is  given  out  for  the  precise  time  in  which  it 
is  taken;  at  that  moment  the  crop  looks  5  per  cent  better  or  5  per 
cent  worse  than  in  previous  years.  That  is  the  fact  that  is  given  out; 
from  this  fact  we  obtain  a  bearing  on  the  situation  as  it  is,  permitting 
thereby  inferential  calculations  of  the  current  price  and  the  probable 
ruling  price  for  the  future,  all  of  which  is  necessary  information  for  the 
producer,  for  the  manufacturer,  for  the  man  of  commerce,  and,  above 
all,  for  the  statesman  mindful  of  the  financial  and  economic  situation 
of  his  country. 

If  the  Governments  of  the  world  will  not  come  together  on  an 
official  and  authoritative  report  giving  the  summary  of  the  world, 
then  we  must  rest  satisfied  to  permit  the  private  crop-reporting  agen- 
cies to  assume  this  task,  and  in  doing  so  we  must  understand  that 
there  is  no  binding  force  to  compel  these  private  agencies  to  give  out 
the  exact  import  of  the  data  they  receive.  They  can,  if  they  please, 
give  out  data  which  they  have  never  received  at  all,  or  they  can  so 
present  the  story  of  the  situation  as  would  be  most  Hkely  to  shape 
the  market  their  way,  or  in  sympathy  with  the  wishes  of  their  clients. 
And  what  if  this  be  done  ?  Who  suffers  ?  Is  it  merely  the  country 
that  exports  ?  By  no  means.  It  affects  equally  the  country  which 
imports,  hkewise  so  the  country  which  neither  exports  nor  imports. 
It  affects  equally  the  great  country  and  the  small  country;  the 
country  nearer  to  the  world's  market  centers  and  the  country  farther 
removed  from  them.     It  affects  equally  the  free-trade  countries  and 


56  INTERNATIONAL  INSTITUTE   OP  AGEICULTURE  AT   EOMfi. 

the  protective  countries.  It  affects  the  high  and  the  low,  the  rich 
and  the  poor.  It  affects  every  living  human  being  on  the  planet.  It 
affects  him  from  infancy  until  the  last  day  of  life.  The  effect  only 
ceases  with  death;  and  it  is  this  terrible  force,  overshadowing  any 
other  earthly  power  whatever,  that  we  are  placing  in  the  hands  of  the 
private  crop-reporting  agencies  when  we  permit  them  to  give  out  in 
their  own  fashion  and  after  their  own  fashioning  the  report  of  the 
condition  of  the  growing  crops  of  the  world.  So  long  as  we  permit 
them  to  do  that,  we  permit  manipulators  to  sit  at  the  table  and  play 
the  chess  game  with  the  world's  prices  of  the  staples  of  agriculture, 
prices  which  affect  not  alone  the  capital  and  labor  of  all  the  land  of  the 
world,  but  also  the  capital  and  labor  of  the  factory,  for  these  products 
are  the  raw  material  of  manufactures.  And  while  the  hands  of  the 
manipulators  move  the  chess  pieces  on  the  table,  directing  and  in- 
fluencing the  world's  prices,  their  feet  at  the  same  time  rest  upon  the 
backs  of  the  governing  forces  of  the  nations  crouching  under  the  cable. 
How  then  can  a  condition  like  this  be  called  "competitive"  ?  How 
can  a  monopoly  be  called  competitive  ?  And  among  all  the  monopo- 
lies of  the  world  what  kind  is  more  fraught  with  damage  to  the  people 
and  danger  to  the  State  than  one  permitting  private  crop-repoitmg 
agencies  the  monopoly  of  information  which  influences,  directs,  and 
determines  the  world's  price  of  the  staples  of  agriculture  ? 

And  now  we  come  finally  to  the  last  of  the  opposing  arguments. 
We  are  told  that  the  statistical  service  of  Russia  is  as  yet  practically  in 
too  crude  a  form  to  permit  her  getting  out  the  report  of  her  crop  condi- 
tions in  the  form  of  the  "single  numerical  statement."  Is  this  true? 
It  certainly  is  not,  for,  as  we  have  seen  before,  a  report  of  the  condi- 
tion of  the  growing  crops  differs  materially  from  a  report  of  the  har- 
vest yield,  A  report  of  the  harvest  yield  is  a  statistical  fact.  We 
count  the  sacks,  or  bales,  or  bundles,  but  in  the  ''condition  of  the 
growing  crops"  we  give  the  state  in  which  they  are  as  compared  with 
what  they  were  before.  While  a  farmer  may  have  forgotten  how 
many  sacks  or  bales  he  produced  in  former  years,  his  memory  is  quite 
sharp  in  comparing  the  present  state  of  his  growing  crop  with  that 
of  former  years.  And  even  if  this  farmer  does  not  report  at  all,  the 
government  forces  of  a  nation  ought  to  know,  and  do  know,  the  status 
of  the  growing  crop  of  that  nation.  They  ought  to  know  and  do  know, 
for  how  otherwise  could  the  budget  of  the  nation  be  maintained  dur- 
ing the  current  year  or  be  prepared  for  the  coming  year  ?  In  a  meas- 
ure this  fact  is  known  even  in  a  country  as  feebly  organized  as 
Morocco.  How  much  better  ought  it  to  be  known,  and  is  indeed 
known,  by  a  great  country  like  Russia?  To  say  that  the  manipula- 
tors of  foreign  countries  know  this  fact  better  than  the  finance  minis- 
ters of  Russia  would  be  equivalent  to  saying  that  the  budget  of  Russia 
would  be  safer  in  the  hands  of  the  foreign  manipulators  than  in  the 
hands  of  her  ministers  of  finance;  and  as  this  is  too  absurd  to  be  true, 
it  must  follow  that  Russia  can  to-day  give  the  institute  a  far  safer, 
truer  statement  of  the  condition  of  her  growing  crops  than  that  cur- 
rently given  out  to  the  world  by  the  private  crop-reporting  agencies. 

It  may  be  freely  admitted  that  at  the  present  time  this  service  is 
but  crudely  developed  in  Russia.  Well,  it  is  at  this  time  but  crudely 
developed  in  almost  all  the  countries  of  the  world.  But  be  it  remem- 
bered that  it  is  not  so  long  ago  when  the  timepiece  of  the  Kings  of 
England,  their  clock,  was  a  great  wax  candle  with  painted  rings,  and 


INTEENATIONAL  INSTITfTE   OF   AGRICULTURE  AT   ROME.  57 

when  the  candle  burned  down  to  the  ring  of  a  certain  color  it  was 
supposed  to  be  a  certain  hour,  but  the  time  has  come  when  even  a 
poor  man  in  England  may  have  on  his  person  a  watch  to  tell  the  time. 
And  so,  even  if  at  this  present  time  in  the  world's  history  the  mode 
of  ascertaining  official  information  of  the  world's  supply  of  the  staples 
be  crude,  it  will  presently,  through  experience,  have  the  crudeness 
polishftd  away,  when  in  the  end  science  and  precision  shall  determine 
the  modes  of  procedure. 

But  shall  not  Russia  wait,  wait  until  this  branch  of  the  service 
shall  have  been  more  fully  developed  before  giving  the  institute  the 
facts  it  should  have  ?  The  answer  to  this  is  clear.  There  should  be 
no  delay;  not  even  a  delay  of  one  month.  Russia  should  give  the 
institute  the  necessary  information,  and  in  the  form  in  which  the 
institute  should  have  it.  The  giving  of  it  at  once  will  begin  to  give 
Russia  the  experience  necessary  to  perfect  her  service.  She  must 
do  so  if  the  institute  is  to  live.  The  institute  can  not  give  a  world 
summary  without  Russia,  and  the  adhering  nations  of  the  world  can 
not  be  expected  to  support  the  institute  with  the  great  funds  that 
it  requires  unless  the  institute  performs  the  function  for  which  it 
was  organized.  The  United  States  Congress,  for  instance,  at  its  last 
session  voted  some  $18,000  for  the  year's  appropriation  for  the  insti- 
tute. Can  the  United  States  be  expected  to  renew  these  appropria- 
tions if  Russia  should  persist  in  withholding  the  necessary  informa- 
tion from  the  institute  or  in  giving  it  in  the  form  in  which  the  insti- 
tute can  not  use  it  ?  The  persistence  of  Russia  on  that  course  would 
be  equivalent  to  the  dissolution  of  the  institute.  We  can  very  well 
understand  that  such  a  course  would  be  the  wish  of  the  manipulators. 
It  certainly  can  not  be  the  stand  of  Russia.  It  is  as  clear  as  daylight 
that  as  soon  as  Russia  understands  the  bearing  and  significance  of 
this  subject  she  will  at  once  give  orders,  orders  which  will  be  obeyed, 
that  the  institute  be  supplied  with  the  reports  of  the  crop  conditions 
in  the  form  in  which  they  can  be  of  service  to  the  institute. 

In  concluding  this  paper  I  do  so  by  inclosing  the  opinion  on  this 
subject  of  the  Hon.  Victor  H.  Olmsted.  Mr.  Olmsted  was  one  of  the 
United  States  delegates  to  the  last  general  assembly  of  the  institute; 
he  is  Chief  of  the  Crop  Reporting  Bureau  of  the  Department  of  Agri- 
culture of  the  United  States  and  is  unquestionably  of  the  highest 
authority  on  the  subject  under  discussion. 

I  shall  now  leave  the  matter  in  your  hands  and  in  the  hands  of 
your  worthy  colleagues  of  the  various  ministries  of  your  Govern- 
ments which  I  am  led  to  believe  are  concerned  in  the  question,  con- 
fident in  the  hope  that  you  will  give  the  subject  the  serious  attention 
its  merits  may  deserve. 

With  the  assurance  of  my  high  esteem,  I  have  the  honor  to  re- 
main, 

Very  truly,  yours,  David  Lubin, 

Delegate  of  the  United  States, 
International  Institute  of  Agriculture,  Rome,  Italy. 


58  INTERNATIONAL  INSTITUTE    OP   AGRICULTUEE   AT   ROME. 

Berlin,  June  17,  1911. 
Hon.  David  Lubin,  St.  Petersburg. 

Dear  Mr.  Lubin:  My  special  work  is  progressing  satisfactorily 
and  will  be  completed  a  few  weeks  hence.  I  hoped  to  go  to  St. 
Petersburg,  but  am  unable  to  do  so  lat  present.  I  therefore  beg  leave 
to  advance  a  few  reasons  why  every  important  nation  of  the  earth 
should  not  only  be  willing  but  also  anxious  to  enable  the  International 
Institute  of  Agriculture  to  supply  such  tangible,  definite  information 
to  all  the  world  as  will  be  of  real  substantial  benefit  and  value  regard- 
ing the  condition  of  growing  crops,  from  month  to  month,  from 
planting  time  until  harvest. 

First.  The  different  nations  have  established  and  maintain  various 
systems  of  crop  reporting  which  are  not  of  uniform  character. 

Second.  In  order  that  the  results  of  these  various  systems  may  be 
reduced  to  a  common  basis,  so  as  to  combine  them  into  a  single  defi- 
nite statement  for  the  entire  world,  it  is  necessary  that  the  results 
reported  by  each  separate  nation  be  interpreted  and  transformed 
into  a  common  expression,  or,  in  other  words,  into  a  "single  numerical 
statement." 

Third.  All  the  nations,  with  two  exceptions,  are  fully  in  favor  of 
such  transformation  and  interpretation,  wherever  necessary,  by  the 
statistical  branch  of  the  International  Institute  of  Agriculture.  Of 
these  two  nations,  one  (France)  is  favorably  inclined  and  will  un- 
doubtedly give  full  indorsement  and  consent  to  the  proposal  in  the 
near  future.  This  will  leave  Russia  only  standing  out  in  an  attitude 
of  opposition ;  and  I  must  believe  that  the  Government  of  Russia  will 
also  join  with  the  other  nations  in  agreeing  to  the  proposal,  for  the 
following  reasons: 

(a)  The  crop  reports  of  all  Governments  which  are  not  expressed  in 
numerical  statements  are  interpreted  as  soon  as  issued  by  a  large 
number  of  irresponsible  private  agencies. 

(&)  These  private  agencies  are  often  inspired  by  selfish  motives 
and  interests  which  cause  them  to  make  wrongful,  biased  interpre- 
tations for  the  purpose  of  improperly  influencing  prices  for  the 
personal  gain  of  speculators,  who  by  their  manipulations,  aided  \>j 
the  false  interpretations,  cause  prices  to  rise  or  fall  at  will,  to  the 
enormous  loss  of  both  producers,  consumers,  and  honest  dealers. 

(c)  The  reports  of  countries  who  indicate  the  crop  conditions  by 
descriptive  words  (instead  of  figures)  are  capable  of  being  given 
meanings  and  interpretations  as  various  and  variable  as  the  person- 
alities and  selfish  requirements  of  the  private  agencies  who  interpret 
them. 

{d)  The  International  Institute  of  Agriculture  is  a  public  agency 
with  no  private  ends  to  serve  and  no  speculative  interests  to  assist. 
Its  methods  are  scientific  and  its  work  is  absolutely  unbiased. 

(e)  Interpretations  given  by  the  statistical  branch  of  the  institute 
must,  therefore,  command  universal  respect  and  confidence  and 
eventually  drive  the  numerous  private  agencies  out  of  business. 

(J)  No  government  can  prevent  any  private  agency  from  giving 
such  interpr-^^tations  to  its  reports  as  semsh  and  speculative  require- 
ments may  demand. 

ig)  Inasmuch  as  the  private  agencies  can  not  be  prevented  from 
making  wrongful  interpretations,  it  appears  inconceivable  that  any 


INTERNATIONAL  INSTITUTE   OE   AGRICULTURE   AT   ROME.  59 

government  will  prevent  the  institute  from  making  honest  interpre- 
tations by  withholding  consent  thereto. 

(h)  It  is  manifestly  to  the  best  interest  of  the  government  and 
people  of  each  nation  that  they  should  be  honestly  informed  as  to 
crop  conditions  throughout  the  entire  world.  Such  information 
can  not  be  supplied  reliably  and  honestly  except  through  the  Inter- 
national Institute  of  Agriculture.  It  follows  therefore  that  every 
government  should  not  only  consent  but  should  eagerly  desire  that 
the  institute  make  such  interpretations  of  its  reports  as  will  enable 
the  publication  of  a  "single  numerical  statement"  for  the  world.  No 
harm  can  possibly  befall  any  government  by  such  a  procedure;  on 
the  contrary,  each  and  every  nation  will  be  benefited  thereby. 

(i)  If  a  single  important  nation  (as  for  example  Russia)  refuses  to 
consent  that  the  institute  shall  interpret  its  reports,  such  nation  not 
only  deprives  itself  of  the  benefit  of  the  "single  numerical  statement 
for  the  entire  world,"  but  it  prevents  the  other  nations  from  receiving 
such  benefit  and  plays  into  the  hands  of  private  agencies  and  iniquitous 
speculators,  it  being  self-evident  that  a  "world  statement"  can  not 
be  formulated  without  including  the  reports  from  every  important 
agricultural  nation,  every  one  of  which  must  necessarily  be  reduced 
to  a  common  denominator,  a  uniform  expression,  a  "single  numerical 
statement." 

Pardon  me  for  this  long  exposition;  I  feel  strongly  regarding  the 
subject,  and  this  must  be  accepted  as  my  excuse.  I  hope  to  hear 
from  you  in  the  near  future. 

Very  sincerely,  yours,  Victor  H.  Olmsted. 

(Note. — Mr.  Olmsted  was  one  of  the  American  delegates  to  the  general  assembly  of 
the  institute.  He  was  the  chief  of  the  crop  reporting  bureau  of  the  Department  of 
Agriculture  of  the  United  States.) 


THE   COMMERCIAL   BULIETIN   AND   THE  FACTORS  IN  PRICE 

FORMATION. 

By  David  Lubin,  Delegate  of  the  United  States,  International  Institute  of 

Agriculture. 

It  is  a  gratifying  fact  tliat  the  institute  now  accomplishes  that 
portion  of  the  labors  assigned  it  by  article  9  of  the  treaty,  which 
deals  with  the  data  on  the  world's  supply  of  the  staples  of  agricul- 
ture. Month  by  month  it  telegraphically  disseminates  its  crop 
reports,  which  appear  in  the  journals  of  the  adhering  nations.  Thus 
the  institute  is  now  imparting  to  all  the  world  authoritative  and 
ofhcial  information  on  the  world's  supply. 

So  much  for  the  supply.  And  now  the  institute  is  about  to  begin 
the  publication  of  its  Commercial  Bulletin  in  a  form  which  wUl 
enable  it  to  deal  with  the  second  portion  of  the  task  assigned  it  under 
this  same  article  9  of  the  treaty.  That  portion  deals  with  the  com- 
mercial phases  of  these  staples,  with  their  exports  and  imports,  and 
with  the  current  prices  ruling  for  them  on  the  principal  market 
centers  of  the  world. 

And  now  this  question  presents  itself,  WUl  it  be  sufficient  for  the 
institute  to  publish  the  current  ruling  prices  ?  I  do  not  think  so,  for 
obviously  to  carry  out  the  intention  of  the  treaty  it  is  not  sufficient 
merely  to  set  forth  the  facts  as  to  what  the  current  prices  are.  The 
institute  should  also  supply  the  kind  of  data  which  would  indicate 
how  these  prices  are  arrived  at,  so  as  to  permit  all  concerned  to  see 
whether  any  influences  are  at  work  adversely  affecting  them,  and 
how  these  adverse  influences  may  be  set  aside.  This  information, 
together  with  the  data  on  the  world's  supply,  which  it  now  gives, 
will  complete  the  circuit  of  the  institute's  labors  in  the  field  of  price 
formation. 

That  the  mere  publication  of  ruhng  prices  is  insufficient  to  indicate 
the  presence  of  any  adverse  influences  in  price  formation  or  the  mode 
of  dealing  with  them  will  be  seen  from  the  following  illustration: 

The  Commercial  Bulletin  of  the  institute  for  December,  1912, 
gives,  on  page  335,  the  quotations  (in  francs)  for  December  wheat  for 
the  week  ending  November  22,  as  follows: 

Antwerp,  20.42;  Paris,  27.70;  Liverpool,  20.27;  Budapest,  25.20; 
Winnipeg,  15.04;  Chicago,  16.09;  Kansas  City,  14.85;  Minneapolis, 
15.26;  and  Buenos  Aires,  17.05. 

Now,  what  are  we  to  understand  from  the  above  quotations? 
What  do  they  teach  us  ?  How  are  we  to  interpret  them  ?  How  are 
we  to  profit  by  reading  them  ? 

Since  Liverpool  is  the  prominent  buyer,  the  great  importer  of 
wheat,  how  does  it  happen  that  while  its  price  is  20.27  the  price  in 
Paris  is  27.70  and  the  price  in  Budapest  25.20?  If  Liverpool  could 
lay  down  wheat  at  20.27,  why  could  not  Paris  and  Budapest  do  the 
same?  What  cause  operated  in  Paris  and  Budapest  to  raise  the 
price  from  20.27  in  Liverpool  to  27.70  in  Paris  and  25.20  in  Budapest  ? 
Then,  again,  why  should  the  price  be  15.04  in  Winnipeg  when  it  was 
17.05  in  Buenos  Aires?  Why  was  it  16.09  in  Chicago  and  14.85  in 
Kansas  City  when  Liverpool  was  paying  20.27?  The  mere  state- 
ment of  the  prices  gives  no  answer  to  these  questions. 
60 


INTEKNATIONAL  INSTITUTE   OF  AGEICULTUKE  AT  ROME. 


61 


Presumably  one  of  the  causes  for  these  diilerences  was  the  pro- 
tective tariff  that  raised  the  price,  and  this  fact  should  be  stated. 
But  this  is  far  from  being  the  only  factor  to  account  for  the  variations 
in  price  from  the  places  of  production  to  the  market  centers,  and 
especially  on  the  world's  principal  importing  center.  Besides  the 
tariff,  there  is  also  the  more  important  factor  of  transportation. 

Now,  unless  all  concerned  are  able  to  understand  from  the  informa- 
tion given  by  the  institute  the  reasons  for  the  variations  in  price  on 
the  different  market  centers,  they  would  not  be  adequately  informed, 
and  the  institute  wiU  not  have  completed  the  task  for  which  it  was 
founded.  To  give  the  prices  alone  is  like  giving  the  summary  from 
an  account  in  single-entry  bookkeeping — it  proves  nothing.  Whereas 
if  all  the  factors  which  go  to  make  the  price  are  given,  the  summary 
of  the  same,  the  current  price,  would  be  proven  as  in  a  double-entry 
balance  sheet. 

And  pertinent  to  this  I  present  an  outline  indicating  several  of  the 
factors  which  go  to  make  up  the  price.  This  outline  was  kindly 
prepared  at  my  request  in  1905  for  the  use  of  the  institute  by  Mr. 
Jomi  McGuirk,  secretary  of  the  Liverpool  Corn  Trade  Association: 

[Shillings  per  quarter  of  8  bushels.] 


Price 
paid  to 
farmer. 

Transportation. 

Insur- 
ance. 

Storage, 
hauling 
charges, 

and 
interest. 

Mer- 
chant's 
profit  and 
broker's 
commis- 
sion. 

Price  in 

Rail. 

Ocean. 

Liver- 
pool or 
Antwerp. 

United  States 

s.  d. 
22    7 
19    6 
17    6 
19     1 

s.  d. 

3  0 

4  0 
6    0 

5  0 

s.  d. 

2  0 
4    0 
4    0 

3  0 

s.  d. 

0    2 
3 
3 

2 

s.  d. 
1    3 

9 
1    3 

9 

s.  d. 
1    0 
1    6 

1  6 

2  0 

s.  d. 
30    0 

India           

30    0 

30    0 

30    0 

Laying  aside  the  minor  factors  in  this  example,  let  us  take  up  the 
major,  the  factor  of  transportation.  Assuming  that  Mr.  McGuirk's 
figures  were  correct,  how  did  it  happen  that  the  average  cost  of 
transportation  from  the  United  States  to  Liverpool  was  3  shillings 
rail  and  2  shillings  ocean,  or  5  shillings  in  all,  whilst  the  charges  for 
the  much  nearer  distance,  Russia  to  Liverpool,  were  5  shillings  rail 
and  3  shillings  ocean,  or  8  shillings  in  all  ? 

In  this  connection  I  wish  to  say  that  while  in  London,  about  the 
same  time  that  Mr.  McGuirk  handed  me  the  above  example,  I  called 
on  the  president  of  the  Baltic,  the  great  merchant  marine  association 
of  Great  Britain,  who  assembled  some  of  the  important  members  of 
his  board.  We  went  over  the  proposed  work  of  the  institute  and  its 
possible  bearings  on  the  merchant  marine  in  so  far  as  it  deals  with  the 
carriage  of  the  products  of  the  farmer.  Those  present  manifested  a 
deep  interest  in  the  subject,  and  a  general  discussion  followed,  so  far 
as  I  could  see,  on  sympathetic  lines. 

It  were  well  if  there  were  a  clearer  and  more  general  understanding 
on  the  subject  of  the  close  relation  between  the  cost  of  ocean  carriage 
(charter  rates)  and  the  home  price  of  the  staples  of  agriculture,  and 
its  important  bearing  on  the  economic  status  of  a  nation.  To  give  an 
idea  of  its  importance  let  us  compare  the  difference  between  the 
bearing  of  the  cost  of  ocean  carriage  in  its  influence  on  the  home 
price  of  manufactured  goods  and  the  bearing  of  the  cost  of  ocean 
carriage  in  its  influence  on  the  home  price  of  the  staples  of  agriculture. 


62  INTERNATIONAL  INSTITUTE   OF  AGEICULTUEE  AT   ROME. 

Take,  for  instance,  the  case  of  a  certain  cargo  of  pianos  clearing 
from  the  port  of  New  York  to  Liverpool.  What  difference  will  it  make 
in  the  home  price  of  pianos  in  the  United  States  whether  the  charges 
for  the  ocean  carriage  of  this  cargo  be  S5  or  $10  for  each  piano  ?  None 
at  all;  the  home  price  of  pianos  will  not  be  affected  by  this  cause. 

And  now  let  us  take  the  case  of  the  staples  of  agriculture.  Say 
that  the  Liverpool  price  for  a  bushel  of  wheat  is  $1;  that  is,  the 
buyer  will  pay  $1  for  a  bushel  of  wheat  delivered  at  the  warehouse  in 
Liverpool,  or  he  is  willing  to  buy  it  in  New  York  at  the  Liverpool 
price  less  the  cost  of  delivering  it  at  the  Liverpool  warehouse.  Thus, 
if  the  cost  of  carriage  from  New  York  to  Liverpool  be  5  cents  per 
bushel,  he  will  pay  95  cents  a  bushel  in  New  York;  if  the  cost  be  10 
cents,  he  will  then  pay  90  cents  a  bushel.  In  the  first  instance  the 
New  Yorkprice  will  be  95  cents,  in  the  second  instance  it  will  be  90  cents. 

The  price  for  what  ?  Will  it  be  the  price  per  bushel  for  the  quantity 
exported  merely,  or  will  it  be  the  home  price,  the  New  York  price  ? 
Clearly  the  latter;  for,  as  is  well  known,  there  is  no  distinguishing 
in  the  wheat  pit  between  the  buyer  for  export  and  the  buyer  for  home 
use.  If  the  buyer  for  export  can  buy  for  90  cents,  why  should  the 
buyer  for  home  use  pay  more  ?  In  fact,  he  does  iiot  pay  more.  Con- 
sequently, we  see  that  if  the  charter  rate,  or  cost  of  ocean  carriage,  be 
10  cents  instead  of  5  cents,  the  farmers  of  the  United  States,  on  a  crop 
of  700,000,000  bushels  of  wheat,  would  lose  5  cents  a  bushel  on 
700,000,000  bushels;  that  is  to  say,  they  would  lose  $35,000,000. 
And  what  is  here  said  applies  not  merely  to  wheat,  but  to  all  the 
staples  of  agriculture. 

It  will  thus  be  seen  that  the  question  of  the  charges  for  ocean  car- 
riage concerns  vitally  all  the  farmers  of  a  nation,  and  more  than  that, 
it  concerns  vitally  the  economic  status  of  the  entire  nation.  Nor 
does  this  influence  cease  here.  High  charter  rates,  excessive  cost  of 
ocean  carriage,  at,  say,  Buenos  Aires,  will  not  alone  lower  the  home 
price  in  Argentina,  but  it  may  lower  it  in  the  United  States,  in  Ger- 
many, in  Russia,  all  over  the  world,  for  while  the  press  publishes 
telegraphic  information  on  current  prices,  it  does  not,  at  the  same 
time,  give  the  current  charges  for  ocean  carriage,  and  so  long  as  infor- 
mation on  prices  on  the  one  hand,  and  on  cost  of  carriage  on  the  other, 
is  not  ^iven  out  simultaneously  to  the  public,  so  long  will  the  public 
be  left  Ignorant  of  the  factors  which  form  the  real  basis  for  determining 
the  world's  price. 

During  the  meeting  with  the  president  of  the  Baltic  and  his  board 
I  further  brought  up  the  question  whether  a  plan  could  not  be  devised 
which  would  permit  the  maintenance  of  a  minimum  rate  for  the  car- 
riage of  the  staples  without  adversely  affecting  the  economic  interest 
of  the  shipowners. 

I  was  given  to  understand  that  before  that  question  could  be 
answered  it  would  be  necessary  to  bring  into  view  the  causes  which 
now  operate  and  which  largely  determine  the  fixing  of  rates  and  their 
fluctuations. 

From  time  to  time  the  various  mercantile  marine  associations  and 
the  shipowners  map  out  in  advance  the  routes  for  their  ships,  and  in 
a  manner  calculated  to  give  them  an  outgoing  and  a  return  cargo. 
And  right  here  comes  the  difficulty— i.  e.,  the  necessity  of  guessing  in 
advance  just  where  and  when  those  cargoes  are  to  be  obtained.  There 
is,  in  the  first  place,  the  outgoing  cargo  of  raw  material  or  manufac- 
tured goods,  and,  in  the  second  place,  the  return  cargo  of  agricultural 


INTERNATIONAL  INSTITUTE   OF  AGEICULTURE   AT  ROME.  63 

staples.  If  a  system  could  be  devised  whereby  the  incoming  and  out- 
going cargoes  could  be  synchronised,  so  as  to  follow  one  another  con- 
secutively, the  freights  could  then  be  handled  to  economic  advantage, 
and  consequently  afford  a  fair  profit  to  the  shipowner  at  a  minimum 
rate.  But  the  uncertainty  oi  obtaining  the  cargoes  in  the  order 
named  sometimes  compels  the  ships  to  make  an  outgoing  or  an  incom- 
ing trip  carrying  ballast.  And  right  here  is  one  cause  for  the  neces- 
sity of  a  maximum  rate.  This  uncertainty  is  unquestionably  a  source 
of  economic  loss — -an  economic  loss  which  falls  primarily  on  the  farm- 
ers. A  loss  which  could  be  largely  obviated  by  synchronising  the 
time  for  the  outgoing  and  incoming  cargoes.  And  the  question  is, 
Can  this  be  brought  about?     Let  us  see. 

It  most  generally  happens  that  the  outgoing  cargo  of  manufactures 
is  destined  for  the  port  whence  the  return  cargo  of  agricultural  staples 
is  to  be  had.  It  would  thus  seem  that  the  incoming  and  outgoing 
cargoes  of  an  agricultural  country  might  be  synchronised  to  follow 
one  another  in  the  required  rotation.  But  at  the  present  time  there 
is  no  concerted  effort  toward  this  end. 

How  to  bring  this  about  systematically  is  the  question.  It  would 
seem  to  me  that  this  could  be  done  through  the  cooperative  and  con- 
certed efforts  of  (a)  the  Government  departments  of  agriculture  and 
of  commerce  and  labor;  (6)  the  chambers  of  commerce  and  boards  of 
trade;  (c)  the  agricultural  associations;  (d)  the  mercantile  marine 
associations;  (e)  the  official  data  of  the  International  Institute  of 
Agriculture.  All  these  forces,  working  for  the  desired  end,  would  be 
likely  to  bring  about  the  results  aimed  at. 

It  would  seem  to  be  within  the  province  of  the  statesman  to  work 
toward  this  end.  Fortunately  the  time  is  opportune  for  such  efforts. 
Formerly  polished  subtlety,  or  even  seeming  subtlety,  passed  current 
as  statesmanship.  But  the  twentieth  century  requires,  nay  demands, 
of  the  statesman  practical  knowledge  of  economic  affairs  and  prompt 
action  best  calculated  to  promote  the  economic  interests  of  his  coun- 
try. Therefore  if  the  institute  can  clearly  indicate  a  line  of  work 
which  is  to  serve  the  economic  interests  of  the  nation,  it  can  surely 
count  on  the  support  of  the  statesman,  and  all  the  more  so  if  this  work 
is  to  serve  the  economic  interests  of  the  world,  for  with  the  great 
increase  in  international  commerce  nations  are  beginning  to  regard 
each  other  more  and  more  in  the  light  of  customers.  The  more  pros- 
perous a  nation  the  better  customer  it  is.  On  this  head  Benjamin 
Franklin  once  said,  "The  worst  thing  you  can  do  to  a  customer  is  to 
knock  him  on  the  head."  And  we  may  add  that  the  best  thing  you 
can  do  is  to  serve  his  economic  interests. 

It  is  high  time  to  recognize  the  fact  that  the  economic  world,  like 
a  great  machine  shop,  must  be  made  to  work  true  in  all  its  parts. 
The  overhead  shaft  and  the  countershaft  must  be  straight  and  true; 
the  journals  must  be  neither  too  tight  nor  too  loose;  all  friction 
points  must  be  properly  lubricated;  the  pulleys  on  corresponding 
line,  the  belts  taut  but  free,  and  then  all  is  weU. 

As  in  the  machine  shop,  so  in  the  world  of  economics,  economic 
stress  of  one  nation  causes  economic  stress  in  others,  and  the  welfare 
of  the  whole  is  thereby  disturbed  and  diminished.  It  is  thus  clear 
that  the  welfare  of  the  whole,  of  all  the  nations,  best  tends  to  insure 
the  welfare  of  each  of  the  separate  nations. 

And  a  distinct  step  forward  toward  economic  adjustment  was 
taken  by  the  institute  when  it  began  the  official  pubUcation  of  its 


64  INTERNATIONAL  INSTITUTE   OP  AGRICULTURE  AT  ROME. 

world  crop  reports,  showing  the  world's  supply  of  the  staples,  where 
the  surplus  is  and  where  it  is  required.  And  now  it  is  to  take  a  further 
step  in  this  direction  by  the  pubUcation  of  its  Commercial  Bulletin. 

And  in  doing  this  it  is  essential  that  the  committee  bear  clearly  in 
mind  what  purpose  this  Commercial  Bulletin  is  to  serve.  It  is 
intended  to  serve  aU  concerned  as  a  guide  toward  the  understanding 
of  price  formation;  to  show  what  the  ruhng  price  is,  and  how  that 
price  is  arrived  at.  If  this  be  its  purpose  it  will  not  be  sufficient 
merely  to  give  the  ruhng  prices  on  the  world's  market  centers;  it 
must  also  show  the  factors  which  go  to  determine  the  formation  of 
the  prices,  and  a  material  factor  in  their  formation  is  the  cost  of  ocean 
carnage. 

As  a  preliminary  step  toward  the  accomplishment  of  all  this,  it 
appears  to  me  that  it  would  be  advisable  to  have  the  president  of 
the  second  commission  and  the  chief  of  the  statistical  bureau  of  the 
mstitute  visit  the  principal  mercantile  marine  associations  and  con- 
sult with  them  with  a  view  to  furthering  the  progress  of  this  work. 

Some  have  objected  to  this  work  on  the  ground  that  information 
from  unofficial  sources  should  not  be  used  in  the  institute's  statis- 
tical buUetms.  This,  however,  need  be  no  bar;  for,  if  the  Govern- 
ments are  shown  that  this  information  is  of  economic  value  to  their 
countries,  they  will  obtain  it  from  the  proper  sources  and  send  it  on 
officially  to  the  institute. 

Further  objections  have  been  offered  to  this  scheme  of  work  on 
the  ground  of  expense.  It  has  been  said  that  if  the  work  here  out- 
lined is  to  be  done  effectively  it  would  involve  quite  an  outlay  for 
telegraphic  expense  ui  obtaining  the  data  and  in  disseminating  them, 
whereas  the  mere  publication  of  the  ruling  prices  as  at  present  con- 
templated involves  no  such  expenditure. 

The  answer  to  this  is  clear.  The  institute  was  not  established 
for  the  purpose  of  giving  useless  information  because  it  is  cheap. 
Useless  mformation  is  not  cheap  at  any  price,  and  information 
useful  toward  economic  betterment  is  not  dear  if  it  bring  that  eco- 
nomic betterment,  even  though  it  increase  the  institute's  expendi- 
ture. It  would,  indeed,  be  much  cheaper  to  incur  this  expenditure 
than  to  forego  it.  The  fact  is  the  institute  can  not  forego  it.  It 
was  established  for  the  purpose  of  doing  this  very  work,  and  it 
would  be  a  breach  of  faith  to  substitute  in  the  place  of  the  real 
work  some  useless  semblance  of  it. 

With  the  price-formation  factors  officially  and  authoritatively 
given  out  to  all  the  world  by  the  institute,  those  concerned  wUl  be 
given  that  information  which,  up  to  now,  has  been  laboriously  and 
scientifically  worked  out  for  their  own  benefit  by  a  few  great  price 
manipulators  whose  monopoly  it  hs.s  been.  Once  this  mformation 
is  made  public  their  monopoly  is  gone.  It  would,  therefore,  be  a 
mistake  for  the  institute  to  expend  money  on  giving  that  part  of 
the  information  which  by  itself  would  be  useless  and  not  to  expend 
the  necessary  amount  which  would  enable  it  to  give  information 
which  the  world  has  not  now  got,  which  the  world  should  have. 

And  now  that  the  institute  is  performing  the  first  part  of  its  labor, 
now  that  it  is  making  known  the  world's  supply,  it  becomes  incum- 
bent on  it  to  supplement  this  work,  to  complete  it  by  giving  not  only 
the  world's  price,  but  also  the  factors  which  go  to  determine  the 
world's  price. 

o 


